Majority of UK clothing companies struggling for survival

Majority of UK habilitate companies struggling for survivalThe major sh ar of the UK clothing securities effort is Womens, girls and childrens making up 68% of the total grocery. The increase in working women efficacy have been expected to cause an upsurge in demand for smart clothing, tho a major feature of the market has been a trend towards short dressing. Which targets the 18 to 25 year of age(predicate) market, has accepted the trend and recently recorded a pre-tax profit permissiveness almost four sequences that of the manufacturing average.Consumers atomic number 18 straight off tutelage towards the budget end of the market, which is targeted by companies such as Primark, Peacocks, Next, and Matalan, or the designer, premium-priced essential (Fashion infomat, 25 May 2005).Selection of OrganisationThis assignment completely deals with the transports in an presidency due to engine room and what macrocosm has been made by the government to mend its profitabi lity. Here education technology has taken as important tool of technology. This attempt aims to discuss the invite of IT agreements that changes the organisation profitability and the exclusively structure.In the U.K way of support industry, it is the necessity to identify the market trends and respond presently to the trends (Fashion infomat, 25 May 2005). Discount chains Next, Peacocks and Primark hold ons which be going to open rapidly in this fashion trend accordingly. In the retail fashion industry like M S, Next, Top shop, Matalan etc. with a gigantic full point when they have been able to rely solely on declining prices to drive sales upwards. However, with the falling pound value and rising afield sourcing greets, competing on price is going to become increasingly difficult for them (Fashion sell Service, 21-May-2009).Why Primark?Look Good Pay LessThe current accredit crunch hit not only the UK Economy plainly the complete world Economy. If we look on t he current UK clothing retail industry, we shall buzz off extinct majority of companies ar struggling for their survival. There is a a couple of(prenominal) success stories in the current period of time regarding businesses, Primark is one of the company.Associated British Foods the owner of Primark have revealed that sales at Primark rose 18% in the 16 weeks to January 3, 2009 which fostered by an increase in selling space and very broad(a) like-for-like sales growth. Primarks performance compares favourably with rival Marks Spencer, which describe an 8.9% fall in general sales for its third quarter. The business of Primark, which has 141 stores in UK whereas 200 in all in all Europe, saw a 122 million pass over in boodle while like-for-like sales increase by 5%. The Primark retailer store is looking to open another seven stores during their southward half of this year (Metro Thursday, January 15, 2010).Associated British Foods, the owner of Primark, has beaten expect ations with half-year profits of 275 million, which was helped by a leap in earnings of 10% at the bank discount clothing retailer. The results represent a 2% dip in profits for Associated British Foods. However, they were higher than the 262 million consensus estimate (Primark website, 10 magisterial 2010). decision maker SUMMARY cornerstone is essential for the vivification of an organization. The organisations who want to survive in this competitive era contain to make foot in result to the external environment as closely as its internal environment. tally to Kotter no business rat survive over the long terminus if it cannot reinvent itself (Kotter, 2004).It is an era of technology and information. The rapid education in technology has changed the attitude of the people and the nature of business as well.In this scientific era the make for of change is very fast and rapid responsive. engineering boosts the process and made different type of intromission.Primark is the one of the organization who understands the impressiveness of technology and intro process. Primark is the discount cloth retailer working from 41 years. Primark is the fast and affordable fashion idea. The changes has taken by Primark has pregnant impacts on company performance and profitability. Primark ameliorates his ordering and logistic body which helps to cut guttle the over head terms. Primark introduce naked working(a) strategy, the company reduces the quantify of waiting guest in queues. These changes help to create the value service to clients. harvest-time psychiatric hospital and reformment, impertinent design, and go customer services are the key points of customer retain and attract newly customers are principal(prenominal) focus of company.To find out all the valuable information I go throw with special seek. I habilitate interviews with Primark circumspection install group decisions on Facebook.com and visit the Primark store as well. Acade mic literature is provided company analysis, SWOT, recommendation, and conclusion are the key point of this assignment.ACADEMIC publicationsWhy fundament?Innovation brings changes in the organisation structure and makes a rise in profitability. Primark is an organisation which dealing with customers in clothing industry and have big set up to manage it. Product life wheel around shows the Primark through with(predicate) its symbolizes.http//www.quickmba.com/marketing/ proceeds/lifecycle/Product life cycle shows the four stages of the organisation, approach, growth, maturity, and decline. The organisation was at growth stage when the understructure is organism done. Innovation brings changes in the whole set up of the organisation.InnovationInnovation is a breakthrough approach or idea that can be completely new or an enhancement to close tothing that al create from raw stuff exist, it is referencing perspective that entrust challenge many who on the nose can not see beyo nd what their own experience is telling them to think or do. Ettlie j., (2006)According to Tidd, J, (2009) innovation is something new that adds value creativity is something new.Innovation is a change in the thought process for doing something, or the useful application of new inventions or discoveries. http//en.wikipedia.org/wiki/InnovationAccording to Michael Neito Lewin has three stages perplex of change speculation, first stage is unfreezing that is the organization away from its current position. Once employee recognize and accept it the here and now stage where changing can begin. The third stage where change is effected in organization, its mean refreezing takes place. Employees tasks and structure and socio technical theory a frequently than frequent (Michael. Neito, 2006).The need for Innovation/Change in the UK clothing industry is a given fact that goes hand in hand with the need for improvement and innovation1(Barrie. L, 2001).Benefits of InnovationThere are many benefits of innovation to the organization. The innovation must increase value of the organisaton and customer value. The goal of innovation is positive change, to make someone or something better. Innovation leads to rise in production which means increase in profit. Following are the briny benefits of innovation. works new industriesMaximize productiveness and economic growthFuels wealth construct and profitsGenerates high-value, higher-paying jobsRaises standard of living3. Types of innovationTypes of Innovation can be classified as underProduct and services the innovation that apply to products and services or market related activities are called products and services innovation. operative Innovation that improves the effectiveness and efficiency of core processes and functions of the organisation is called operational innovation. pedigree model Innovation that basically transforms the business upwards and provides a better way to work or derives revenue up is called business model innovation.Partnership innovation Partner innovation mean two businesses or riotouss get together to make innovation. There may be establishment and private partnership innovation for favour of public. Link, (2006)Portfolio innovation The key to choosing products that contributes to profitability lies in changing the business focus of portfolio management from financial subject to customer value. Mello, et al (2006)Primark has selected operational innovation to up grade the whole infrastructure of the organisation for the favour of organisation and for the favour of its valuable customer. The organisation selects the operational innovation to avoid customers standing long time in queue and for better customer services. part of Manager in InnovationManagers are either incapable of or somehow exempt from, innovation. Role of manager in the process of innovation is very important. Manager should ascertain all the aspects regarding innovation in the organisation. According to Roger Bean and Russell Radford there are several points that related to nurturing and fostering innovation that are worthy of more attention to manager. Following are the points that a manager must capable. individual(prenominal) understanding of the process of innovationContinuous learning and study low densityOpennessLeadershipFocus on strategic issues rather than operational tasks(Roger Bean and Russell Radford, 2002)System development and organisational changeJon food turner Kenneth Laudon claiming that information system is an opportunistic component. Largely IT systems provided faster and accuracy results in the process of communication. It took the firms to gain competitive advantage in the firms value chain and opportunities(Jon. Turner Kenneth. Laudon, 1988). discipline technology can promote several(a) important organizational change, ranging from incremental to far, reaching like structural organization change that are enabled by information technology 1) Automation 2 ) Rationalization 3) Reengineering 4) Paradigm shifts (Kenneth. Laudon and Jane. Laudon, 2009). innovational OrganisationThe organisatiion need to take certain steps to become forward-looking organisation. Some important steps that should take the organisation are following. (Ettlie, J. 2006)Create strategic visionCreate organisation structures that promote collaboration return processes to convert ideas into innovationsAllocate resourcesTrain workforce on creativity tools legal profession and communicate resultsRecognise creative behaviourReward innovation resultsoperations managementEvery time businesses are looking for new and improve methods to improve the efficiency of their operations to achieve higher profitability. Information systems and technologies are some of the most important methods acquirable to managers for achieving high levels of efficiency and productivity (Jane. Laudon and Kenneth. Laudon, 2008).The theory of off shore business and outsourcing has taken a spacious advantage for firms to play globally irrespective of its place consideration (Kshetri. Nir, 2007). doing ProductivityMany retailers have improved their operations productivity through computerisation scoffouts, the electronic point of sale system and scanning formats. They use this system to process dealings and monitor inventory efficiently. Computerised registers instantly record and viewing sales provide detailed receipts and store inventory data. This system lowers costs by reducing transaction time, employee training and the need for level pricing (Barry. Berman and Joel. Evans, 2006).Firms increased its productivity and flexibility with use of IT. But increased cost in installations and maintenance resulted (Olson. Margrethe, 1993). put up Chain ManagementThe fork out chain consists of all parties involved, directly or indirectly, to fulfil the requirement of customer. These affix chain includes not only the manufacturers and suppliers but also the transporters, warehouses, retailers and even customers themselves, the provision chain includes all functions involved in receiving and full filling the customer request (Sunil. Chopra and Peter. Meindl, 2007).It is clear that it is very important for some level of co-ordination for some level of activities and processes within and between the organisations in the supply chain that extends beyond logistics and this is called Supply chain management (Cooper. C., Lambert. D, and Pagh. D, 1997).The management of upstream and downstream human relationship with suppliers and customers to deliver superior customer value at less cost to the supply chain as the whole (Douglas. Lambert, 2008).Total caliber ManagementTotal choice management mean continuous improvement in the business, it is a philosophy for running a business, manage the business in force(p) way, total people empowerment, mainly a focus on the customer, a commitment to quality and investment in knowledge (Cali, J.F, 1992).Total Qualit y Management is considered to be more incremental than business process re-engineering. TQM typically focuses on continuous improve and change rather than stay just in one change (Kenneth. L and Jane. L, 2006).How information systems support quality improvements?By Mithas, Krishnan, Fornell, the Service industries are performed better with customers than manufacturing industries. Information affects the products quality and its value. With that the research outlined market value of firms are increased for the firms using IT in its core business operations(Fornell. S, and Mithas. S, 2005).The study fix that the new theory evolved in fashion industry due to IT in place. It changed the force of influence and fashion dimension in respect to the type of business (Lee. Jintae and Collar. Emilio, 2002). natural ProductsThe products are serviced is the principle component of marketing as it provides revenue without which commercial-grade activity could not take place. The following are th e products used in marketingInnovative products are completely new to the market.Replacement products might include renowned items with a new design and functions.Imitative products are common and are termed as Me Too products.Re-Launched products occurs when an original product had been declined but the company expects sufficient potential sale if product is altered through manipulating the marketing mix (Geoff. Lancaster and Paul. Reynolds, 2004).New Product success most schematic companies focus on incremental innovation can allow companies to defer new markets by adapting existing market offerings for new customers. Seven feeling of innovationSee the future through the eyes of yours customer capable property and brand power are key assets.Use digital technology to create tools for customers.Build a championship team, not a group of championship.Innovation is a state of melodic themeSpeed is minute so push your organisationPartner up if you are not the best in something(Phil ip. Kotler, 2009)Technological change and new product developmentThere are important aspects regarding the impact of the pace of technical change and new product development. The first one in many industries life cycle is shorting. This then creates vicious circle in as much as the marketer must increasingly be looking for new products to replace the outdated ones. Second consequence of the increased pace of technological change is that there is now a premium on macrocosm able to develop and launch new products quickly (Geoff. Lancaster., Lester. Massingham Ruth. Ashfor, 2002).Lot of new concepts of business like e-commerce introduced and benefited to firms. It varied firms performance and holding more available options to function and to develop its operations (Koellinger. P, 2008).ORGANIZATIONAL ANALYSISBy primary researchIn terms of find out thats what changes has been made in Primark organization, I go through with primary research .I go through with managerial interviews fro m the Primark FALG SHIP store at oxford street London. I arrange group discussions on www.facebook.com to get the customer view that, are the customer are getting the results in the result of the company efforts. I met the store manager INA RANKIN and Dept. store manager MIA RAJ to find out recent innovation made by the company that influenced by technology. I done long time interview to collect valuable information and then flesh out in this assignment.(See appendices 1 for detail inerview)In the result of the interview we found some of the very significant changes that made by Primark and we point out below.New ordering and distribution systemQuality improvement.New Product Line.Cut the cost of packing.Improvement of store operations.Return and exchange policy.digital administration system2.Reduction in customers queue3Treat in Primark respectable trading managed with IT4. no. I leave behind have a look on each change in a lilliputian bit detailQuality improvementCompany cons tantly up his quality of product and fitting to give the customer real expiation and value for money and the company al shipway introduce new and improve technology in the manufacturing process.New Product LinePrimark introducing hundreds of new product lines every week to deliver up to date fashion regarding the customer needs and demand, when a new fashion introduce in the market its only take six weeks to come in company stores and it because of the call forth and improve technological innovation. Primark introduced new product range as well like Denim Co, Butler and Webb range, Rebel, Early long time and Backswing.Cut the cost of packingPrimark believes to deliver good quality products on affordable price, so company always try to find out new ways to minimize the price. In these days company made a strategy that to cut the cost of packing.Improvement of store operationsAll the stores of Primark having a huge amount of customers every time and the pressure on the work on wa s too much excessive, to reduce the customer check out time in long queues Primark installing more tills in every store, it helps the Primark to improve customer services and profitability as well.Return and Exchange insurance policyPrimark recently change its return and exchange policy. Prior if you want to return or exchange a product you could do only in same country with in 14 days but now you can return or exchange within 28 days and whichever country you want where company stores exist.digital administration systemThe Digital Administrative Management system (DAD) with air Collaborators management solution providers has introduced to reign of large information at one time and eliminated paper plans decrease admin costs by 50 percent as well as reduced confusion with overloading emails. Specifically it is supported to new store development functions. Good communication flow has been taking place with the system to image the information in an efficient way.Reduction in cust omers queueAn electronic call forward system is adopted to improve customer transaction times and minimise queuing at Primark.Treat in Primark value-systemal trading managed with ITIn the past years, Primark is largely criticised in its gap in ethical trading systems with suppliers who are employing illegal migrant workers. Now new software product having a tool Entropy will look the global suppliers to check the mandatory code of conduct of suppliers. Entropy is a web ground supply chain audit systems, the remedial actions and quality of working environments can be checked. This is entirely a global system has its visibility and tools of great control.Business Methodology of PrimarkPrimark is the one of the largest company in UK related to ready mad garments, following are the business points of business methodology.Push essential up push up all the resources and skills for enhancement of quality in the field of garments industry using the high skilled and motivated team. varia nt of new technology for control management process and ETI are significant practical way of getting in, with new information technology as Laudon and laudon 2008.New ordering system is a good example of JIT and Supply chain management.Primark all the time follow high moral and ethic values to serve customers and all member of organization. Its possible when customers happy and proficient parallel with company in the industry.Interdicting new product lines, improvement of products quality, improving of operations management all are very relevant to TQM and retail management theories.Primark has philosophy to provide facility of margin, benefits regarding price vice, quality vice, invention services and as well as with employees satisfaction, production, sale, logistic management and innovation for reducing cost and better management.RecommendationsPrimark should introduce online trading/purchasing. These will help them to increase their revenues, generate more profits and create c ustomer value. It will also help them to become number one Retail firm in the UK.Primark should try to eliminate the perception of low quality from the Customers mind by introducing new products and offering a better quality and keeping the same price range.Primark should expand their business in developing countries.Primark should abide on Ethical trading where suppliers are employing unskilled labours to manufacture the clothing and are also offering them low pay scale which in turn is affecting the reputation of the Company.Primark should serve customers of all age groups and not just youngsters.ConclusionIn this current credit crunch period where most of the companies are going to close down and some of them are struggling for their survival, Primark is the only organisation who is doing considerably well in this quoin time. The only reason is that they are doing well is because they have understood the concept of innovation and change management. Innovation is very important for the organisation but people are scared to adapt and put themselves in innovation process as they dont know whether innovation will be good or bad for them or for their organisation. Primark has adapted to change and innovation has introduced various systems to operate their work efficiently and effectively. They are also opening new stores which are more spacious than before. The reason for their success is innovation. Innovation in Technology management and organisation plays a very important region in todays world of science.ReferencesAlbert N. (2006), Public Private Partnership Innovation Strategies and policy Alternatives. the States Spring Science + Business Media.Berman, B. and Evans, J. (2006) Retail Management a strategic approach. 10th ed., US, Pearson Prentice Hall.Chopra, S. and Meindl, P. 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