The Human Problems of an Industrial Civilization

The author, Elton Mayo was able to show his ground-breaking work in this book. It is an apt title for it captures what Mayo is trying to say from the onset. The human problems arising from the industrial age is not brought about by machines and technology but surprisingly it comes from how man treats his fellow man. Technology is a tool in the industrial age but it is human behavior that dictates the success and failures of businesses. Mayo's insight seems to be so advanced that one wonders how his ideas was received during his time. An example of his ideas can be seen in the following statements, â€Å"The human aspect of industry has changed considerably [†¦] Whereas the human problems of industry were regarded until recently as lying within the strict province of the specialist, it is now beginning to be realized that a clear statement of such problems [†¦] is necessary to the effective thinking of every business administrator and every economic expert† (p. 1). Another thing that is interesting about this book is the fact that the author focused his research not on how to maximize production and how to increase the productivity on the basis of correct usage of technology. Mayo went the other route and he set his sights on the human aspect of industry. It was such a refreshing view and its effect no doubt is to reawaken the businessman's passion for people and reinvigorate the administrator's basic belief that the most important resource is not the raw materials and the machineries needed to create goods and services; but the people working for the company. Mayo acknowledged that the foray into the human aspect of industrialization is a fairly recent endeavor.   He traced this development in the early research of England's Sir William Mather of the firm of Mather and Platt in Manchester. Mather experimented on reducing the weekly hours of working. The result was positive and production increased while there is a significant reduction of time lost. From this experiment Mayo expressed amazement at this breakthrough. For the first time there is now a documented body of evidence that improving work conditions can improve the efficiency of the operations. But Mayo was quick to point out that the only significant development coming from this discovery is the institution of the forty-eight hour week in the â€Å"arsenals and dockyards of the British government† (p.2).   Mayo lamented however that, â€Å"†¦apart from this, the results of the experiment did not lead to any general adoption of analogous methods on the part of the privately owned establishments† (p.2). Fatigue According to Mayo the general disregard for this revolutionary idea of the positive effects of improving working conditions continued until the World Wars came. In this special circumstances behaviorists and like-minded individuals were exposed for the very first time on the varying forces and factors that affect a large scale production area such as those that produces munitions for the war. â€Å"Apparently no one had ever sufficiently considered the enormous demand upon industry that would be organized by a war-machine organized upon so heroic a scale [†¦] The authorities became aware of the â€Å"national lack of knowledge of the primary laws governing human efficiency† (p.2). Monotony In the recently described problem of sustained activity and heavy workload, the government created health committees to assure the continuous ability of worker to perform at a higher level. The same health committee was able to discover that fatigue is not the only problem. There is also such a thing as monotony caused by repetitive work. Dr. H. M. Vernon, one of the influential members of the committee and board suggested two possible solutions to this problem: 1) the use of rest-pause (or taking breaks); and 2) creating variety in repetitive work (p.29). At his point it is good to take a pause and re-examine one of the highpoints of the book. In the description of major concepts or major problems that human beings face in the industrialized world, Mayo was able to build a believable case. Again, one has to remember that this was written from a world view that just came out of the agricultural economy of the old world. In that old way of doing things, management of workers depended on a very crude method of determining what to do and what not to do. In the agricultural system workers are dictated by nature and the seasons. In other words, summer is the time for planting and winter is the time for rest. Crops mature, gets harvested and a new cycle of planting begins. The seasons of harvest and of the four major climate changes were the only needed time frame which man uses to create a human resource management scheme. In the industrial age everything was different. When factories were build and warehouses were made, men and women are placed inside shelters that are not affected by weather and climate. Inside these workplaces people can even work on 24 hour shifts 12 months a year, winter, spring, summer and fall. That transition from the old to the new was expertly captured by Elton Mayo in the introductory chapters when he was describing the nature of fatigue and monotony. No doubt fatigue and monotony are not exclusive in the industrial age but there was no way of bringing it into focus and there is no way of placing it in an environment where it could be studied. Mayo was successful in using the setting of the two World Wars to provide a backdrop and some needed contrast between the farming systems and the industries that sprang up in the 20th century. Mayo could have used other examples to show forth the differences between the two worlds but the readers may not be able to appreciate it as much as when he used the historical development of the early 1900s. By doing so, the readers could see the transition from farm to industries. Then he was able to paint the picture of the new human problems encountered in the new scheme of doing things. Not Merely Improving Conditions Elton Mayo was not merely contented in sharing groundbreaking research. Just like every researcher worth his salt, Mayo pushed the newly discovered idea to the limit. In re-examining the Hawthorne experiment, the author was implying that it is not merely the improving of working conditions that affected the efficiency of workers but it is due to a host of other factors and one of them is called â€Å"morale†. In succeeding chapters Mayo was able to explain morale and gave examples to illustrate it. His favorite model though is an organization called the Western Electric Company. He listed the innovative ways that the company tried just to improve efficiency: 1) nutrition (access to an affordable restaurant; 2) access to clinic/hospital; 3) training opportunities; 4) vacation packages etc. This prompted him to say, â€Å"†¦an unmistakable determination to fulfill humane intention to the utmost† (p. 99). Society and Industry Surprisingly, the author did not rest in the fact that he had discovered something really revolutionary. Instead of stopping he continued on with his research. It may be an understatement that he was trying his best to get to the bottom of things. After the numerous experiments that brought the readers from a 19th century firm to World War I munition factory and then to an Electric Company, Mayo did not only wanted to be diverse but he also wanted to change the conditions of the experiment. In the latter part of the book he described the effects of the environment or the society in the ability of workers to give a decent output. To have a good feedback Mayo chose areas where delinquency is a problem. Governments and Industry To complete his holistic approach Mayo has to tackle the role of governments. He was confident in saying that the form of government is insignificant since human problems in the industrial age remains the same wherever one goes. By reaching this part of the research one can say that Mayo has come full circle and was able to show not only that there is a need to look closely into the human aspect of industry but also that there are many factors to be considered. Conclusion The way the book builds its case and the flow of information is very satisfying for both the student and researcher. Mayo was able to slowly build his case using a not so heavy historical approach. By using highpoint in the history of man, he was able to provide a sketch of how human problems in the industrial age came to be. He was not only able to show the cause of the problems but Mayo was also able to show convincingly the cures for this ills. To make his argument rock solid he was not merely content on using feedbacks from one particular source or even one particular method of study. He brought the readers to insights in human behavior in the late 19th century and demonstrated that it was consistent even after the turn of the century. By using multiple sources of data the readers can be easily convinced about the assertions made in the book. In so doing the author was able to make it clear what he meant by, â€Å"The Human Problems of An Industrial Civilization†. References Mayo, Elton(1933) The Human Problems of An Industrial Civilization. In K. Thompson (Ed.) The Early Sociology of Management and Organizations. New York: Routledge.      

Personality Development Essay

-Psychology-scientific study of human and animal behavior and human mental processes. -Logos-logic : Ancient greek philosophers. Introduce logos. Explain natural world. -Natural Philosophers-naturalistic/physicalistic explanations. Mythos: story or legend. -Empiricism-knowledge based on observable events. Instantly applied to understanding of natural world. -Personality Psychology-scientific study of unique, characteristic patterns of thinking. Feeling, acting(cognition, emotion, behavior) –Various Theories â€Å"Different focus will produce different conclusions.† Hebrew Tradition (mythos) – two basic impulses that are identified. 1. yetzer ra: selfish impulse. Drive towards survival. 2. Yetzer Tov: Selfish/altruist impulse. Moral. Christian Tradition (mythos) – Original sin. Basic Nature is selfish. Early Greek Tradition (logos) – Greek physicians: Hippocrates (460-370bc) Human health/behavior-result of bodily fluids/humors. Imbalance of humors produces illness(blood, phlegm, bile). Related to fire water wind earth air. Galen (131-200ad) Development of Theory of Impernment (personality types) 4 Types: *Sanguine (blood and air) Personalities: extraverted, social. Extreme: arrogant, indulgent, impulsive ** Cholaric (yellow bile, fire) Personality: passionate, charismatic, ambitious, energetic. Extreme: dominary ***Melancholic (Black bile, earth) Personalities: thoughtfulness, considerate, creative. Extreme: OCD ****Phlematic (phlegm, water) Personalities: kind, dependable, reliable. Extreme: inhibited, reserved. ^Continues as Trait Theory Myers Brigg personality type indicator–invented by Carl Jung E-I: extrovert/introvert S-N: Sensing/intuative T-P: thinking/feeling J-P: judging/percepting *16-17 Century:——-Essential Nature: Three Philosophies Thomas Hobbs (original Sin) – inherently selfish, egotistically, aggressive. Must be controlled by society Jean Jacque Rousseau (noble savage) – inherently good, selfless, altruistic. Corrupted by society. John Locke (tabla rasa, blank slate) – neither inherently good or bad. Shaped by society. *20 Century—–Each philosophy is going to influence a psychology (Personality Theory) Three Psychologies: Sigmund Freud (psychodynamic) – selfish, pleasure seeking, aggressive (Id). Controlled by internalized social constraints (superego) Carl Rogers (humanistic/ existential) – inherently good. Possess potential for positive growth. Basic needs not met. B.F Skinner (behaviorism) – neither good/bad. Shaped by experience, environment. Learning Sigmund Freud First comprehensive theory or personality dev. Three components: Personality structures – personality composed of 3 interacting elements. Biologically focused. Id – inborn selfish, self serving, aggressive, pleasure serving. Superego – Voice of conscience. Conflicts with Id–produces anxiety. Ego – Mediator between Id and Superego. Seeks to satisfy Id’s demands in a socially acceptable way. Reduce anxiety. Develops defense mechanisms. * Defense mechanisms – Ego and Id. Reduce tension or anxiety between the Id and Superego. Believed repression was the primary defense. Remove from conscious awareness deny existence of conflict. Developmental Stages __Anna Freud Focus on ego development. Focus on adaption to social world. Defense mechanisms facilitate social adaptation. Development of Ego Psychology – Focused on social relatedness as a motivator vs biological. Responsible for negotiating between individuals needs and outside world. *Success of defense mechanisms based on how well they work meeting needs. Adaptive vs. Maladaptive *#*# Ego Psychology – Basic Propositions: 1. Inborn capacity to function adaptively. Life long process of active adaptation to external envir. 2. Ego has autonomous functions within â€Å"conflict free zone†(interaction between individual and world). Ego mediates between the individual and the social world. __Heinz Hartman – Ego Psychology and the problem of Adaptation -Individual adapts to interactions with â€Å"real† world. Autonomous function of ego–Arise from evolution and enhances survival. >Process of Adaptation: Occurs in two domains: 1. Alloplastic Adaptation – change and choose environment. 2. Autoplastic Adaptation – change self to meet needs. __Erik Erikson – Identity and the life cycle. Epigenic Principle – development occurs in series of stages. Stages are universal. Stages unfold in pre-determined order. Each stage requires mastering of tasks. Life long process. Have cumulative effect. __Alfred Adler – â€Å"Individual Psychology†. Still considered psychodynamic. Develops as reaction to freud. Most influential unknown psychologist. Contributions: Positive psychology. Emphasis on: uniqueness of each person. Social/cognitive influences. *Active construction of self. -Based on four concepts: Striving for significance Private Logic Fictional Finalism Style of life -*-Striving for Significance – Perfection. Completeness. Self Actualization. Based on private logic and fictional finalism. Inborn sense of inferiority. Develop compensation. Failure to overcome results in inferiority complex (overcompensation). -*-Private Logic – emphasizing creative power of self. Suggest â€Å"self† is not passively determined. actively constructed. Function is served by fictional finalism and life style. -*-Fictional Finalism – future oriented. The goal towards which we strive. Exist subjectively. Goal is to satisfy striving for superiority. Individuals pursue goals through various behavioral choices. Each person develops unique patterns of behaviors.(style of life) -*-Life Style – Attempts to gain goal through various behavioral patterns/choices. Each person express striving different. Based on private logic and fictional finalism. Individually unique patterns of behaviors/responses.

Cloud and Clouds Reference

Republic of the Philippines Department of Education Region III Division of Bulacan District of Plaridel Sto Nino Elementary School Sto Nino, Plaridel, Bulacan A DETAILED LESSON PLAN IN SCIENCE AND HEALTH IV I. Objectives A. Name the different types of clouds. B. Describe each type of clouds according to appearance. C. State some ways in preparing for a bad weather. II. Subject Matter â€Å"Types of Clouds† Reference: Science and health IV by Jessie Villegas p. 187 Materials: puzzle, pictures Vocabulary: Clouds, Cirrus, Stratus, Cumulus, and NimbusScience Concept: The different types of clouds are cirrus clouds, stratus clouds, cumulus clouds, and nimbus clouds. Science Processes: Observing, Inferring, Comparing, Communicating Infusion of Values: As students we need to prepared umbrellas and rain coats to get ready for the bad weather. III. Procedure Teacher’s ActivityPupils Activity A. Preparatory Activity 1. Daily Routine Prayer Greetings Checking of attendance 2. Revi ew Yesterday we talked about weather Yes, Ma’am and it’s elements, right? Ok, Now what is weather? Weather refers to the condition of the atmosphere at a particular time and lace. Very Good! Ok, let’s give him a Very Good Clap! (Pupils doing the Very Good clap) 3. Motivation Class I will teach you a song entitled â€Å"Did you ever see a cloud† I want you all to sing, but I will sing first and you will go next! Ok! â€Å"DID YOU EVER SEE A CLOUD† Did you ever see a cloud A cloud a cloud Did you ever see a cloud That looked like a bear A big one, a little one A lazy one, a funny Did you ever see a cloud That looked like a bear? Did you ever see a cloud A cloud a cloud Did you ever see a cloud That looked like a plane A big one, a little one A fast one, a slow oneDid you ever see a cloud That looked like a plane? OK class, it’s your turn now. Sing! (students are singing) VERY GOOD! You all sang great! What is the title of the song? The title o f the song is â€Å"Did you ever see a cloud? † Very Good! What is the song all about? It’s all about clouds. Yes! Correct it’s all about clouds. Have you seen a clouds that looked like a bear? No, ma’am but I’ve seen a clouds that looked like a cotton candy. B. Activity Proper Now I will divide you in four groups, I have here a puzzle and I want you to solve these. Each group will have a leader and after olving the puzzle the leader will stand in front to explain the image that they get. Ok let’s start! (the teacher is giving them the puzzle)(The students are doing the activity) Finished! Let’s start with group one. OH, it’s cirrus clouds image, what can you say about this picture? (The leader is explaining her/his observation about the picture) Very Good! Next group You got stratus clouds image Explain. (The leader is explaining her/his observation about the picture) Very Good! Third group with cumulus clouds Image. (The lead er is explaining her/his observation about the picture) Very Good!The last one, ok what can you say about nimbus clouds? (The leader is explaining her/his observation about the picture) Very Good! You observed very well C. Concept Formation Based on our activity, what do you think will be our lesson for today? It’s all about clouds. Clouds are recognized and named for their shapes. Meaning, clouds get their names according to their shapes. The different types of clouds are cirrus clouds, stratus clouds, cumulus clouds, and nimbus clouds. Ok let’s start with Cirrus clouds, (The teacher will show a picture of cirrus clouds) How will you describe cirrus clouds?Cirrus clouds are thin and feather-like. Yes it is, as you can see in the picture the lower part of the clouds looks like a feathers of a bird. Cirrus clouds are the highest of all clouds. And Cirrus means â€Å"curl of hair†. Observe clearly the lower part of the clouds looks like curly hairs. What clouds is said to be the highest of all clouds? Cirrus clouds are the highest of all clouds. Cirrus clouds are thin and feather-like. What is the meaning of cirrus? Cirrus means â€Å"curl of hair† Very Good! Next is Stratus clouds. (The teacher will show a picture of stratus clouds) How will you describe stratus clouds?Stratus clouds are flat layers. Very Good! Stratus means â€Å"sheetlike†. As you can observe, these clouds looks like pieces of papers floating in the air. Stratus clouds are flat layers often seen close to the horizon in the early hours of the day. They frequently appear several hours before a steady rain. What is the meaning of stratus? Stratus means â€Å"sheetlike† Next is Cumulus clouds (The teacher will show a picture of cumulus clouds) Look at the picture, how will you describe cumulus clouds? Cumulus clouds are thick and mountain-like. Cumulus clouds are often seen on a hot summer ay as a fluffy balls of cotton in the sky. Have you seen these clo uds during your summer vacation? Yes ma’am Cumulus means â€Å"pile† or â€Å"heap†. As you can see a large number of clouds lying on top of one another, that’s why it is called cumulus. Cumulus clouds are thick and mountain-like. What is the meaning of cumulus? Cumulus means â€Å"pile† or â€Å"heap†. Last is Nimbus clouds. (The teacher will show a picture of stratus clouds) How will you describe nimbus clouds? Nimbus clouds are dull gray in color. Nimbus means â€Å"rain† Nimbus clouds are dull gray in color. They often extend unbroken over a wide area.They are the rain clouds. What is the meaning of nimbus? Nimbus means â€Å"rain† D. Generalization What ere the different types of clouds? The different types of clouds are cirrus clouds, stratus clouds, cumulus clouds and nimbus clouds. Cirrus clouds are thin and feather-like. Stratus clouds are flat layers often seen close to the horizon in the early hours of the day. Cumul us clouds are thick and mountain- like. Nimbus clouds are dull gray in color. E. Application (I will divide you class in four groups, each group will be given a jumbled letters to solve. When done he leaders will put the answers on the space provided in front) Arrange the jumbled letters to get the answer. (The students are doing the activity) 1. SURATTS DSCLUO are flat layers often seen close to the horizon in the early hours of the day. 2. BUSNMI DSOULC ARE DULL GRAY IN COLOR. They often extend unbroken over a wide area. 3. SLUMUUC OULDSC are thick and mountain-like. They often seen on a hot summer day as fluffy balls of cotton in the sky. 4. SCIURR DCSOUL are thin and feather-like. They are the highest of all clouds. F. Infusion of Values As a student what things are going to prepare when ou noticed that the clouds are turning dark? As students we need to prepare umbrellas and rain coatsfor the bad weather. IV. Evaluation Write TRUE if the statement is correct and FALSE if the st atement is not correct. 1. Clouds are recognized and named for their shapes. 2. Nimbus clouds are dull gray in color. 3. Stratus means â€Å"pile† or â€Å"heap† 4. Cumulus clouds are thin and feather-like. 5. Nimbus means â€Å"rain† V. Assignment 1. How are clouds formed? 2. What is cloud cover? | Prepared by: MARIEL A. MIGUEL BEED IV-B LU ANN L. RAMOS Cooperating Teacher ESMERALDO M. TRINIDAD JR. Coordinating Principal

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Career Trends Assignment (Restaurant and Hospitality Management) Coursework

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Design a scientific study to investigate the effects in any of green Research Paper

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Eating and hunger - Essay Example Obesity and overweight can be generally defined as the state when the body mass index increases disproportionately vis-Ã  -vis standard set by the medical authority. ‘An overweight adult is defined as one with a BMI between 25 and 29.9, while an obese adult has a BMI of 30 or higher. In children and adolescents, overweight is defined as a sex-and-age specific BMI at or above the 95th percentile, based on revised growth charts by the Centers for Disease Control and Prevention’ (HHS News, 2001, ref.2). Bad eating habits and erratic eating schedules are key proponents of obesity. The increasing trend of eating fast food and aerated drinks are the major reasons for overweight as they are high on calories and low on nourishment. Genetics and to some extent obese behavior can also be contributed to the socio-psychological paradigms of the communities at large. Researcher Smith says that fat intake of children in US has ‘inadequate amounts of fresh fruits, vegetables, and complex carbohydrates, but excessive amounts of fats’(Smith, 1999, p. 84). Another very interesting observation is made by Birch et al. who say that some teachers also promote unhealthy food by using it to reward students for desired classroom behavior and ‘this practice leads children to attach great value to such treats’ (Birch et al., 1995). The alarming rise in obesity and overweight has become a serious problem because it promotes serious health hazards in the form of diseases, especially silent diseases like blood pressure, which may also prove fatal and cause death. It is common knowledge that diseases like heart problems, diabetes, are the by products of obesity which, if not diagnosed early and treated, may lead to death. Obese people are also prone to socio-psychological problems like depression which has now become a key issue and needs urgent attention. Overweight and obese children often become the

Whether Ethical Sourcing A Source Of Competitive Advantage Dissertation

Whether Ethical Sourcing A Source Of Competitive Advantage - Dissertation Example Adopting the means of ethical manufacturing sourcing generally relates to a wider market audience and conformance with predefined ethical standards and principles that facilitate an organization to create a brand image and adhere to the corporate social responsibility. Ethical sourcing, however, is a hindrance that suppliers face in their normal course of business. For instance, organizations find it expensive to adopt ethical supply chain and distribution networks thus generally face lack of coalition among business and individual objectives. UK ethics law is essential in guiding principles for ethical sourcing since it conducts activities under the permissible range of the European law. Supply chain is a condition that enables an organization to operate in a more defined manner than the companies it competes with. It gains competitive advantage, which results in profits increase to that company in terms of margin enhancement, especially in the modern dynamic business world. It also serves as a valuable strategy as it involves all critical features that a strategy entails like conceptual and analytical decision making in terms of products, their time of delivery and the market to be targeted. Introduction Ethical sourcing is making sure that workers who are treated well and paid fair wages to work legal hours create the products being sourced in safe facilities. It also means that the supplier of the product is regarding the environment for the period of the production and manufacture of the product. Many companies may have various reasons as to why they use ethical sourcing. Others may claim to embrace ethical sourcing, but not completely and may not be practicing it in all their companies globally. Sourcing ethically is ensuring that honest values are met for the period of the manufacturing of products, as well as sourcing equipment. It is ensuring the participation of everyone in their products' development is paid a fair wage and working in safe and hygien ic conditions. It also means that employees work at reasonable hours, is not subject to unfairness and is of civilized working age. In this project, it will be found out whether Ethical sourcing is a source of competitive advantage to various companies owing to customers and consumers’ interest. Analysis of the strategies that different organizations like M&S and Co-op use to realize effective ethical sourcing is going to be done to show whether these ethical sourcing is beneficial or disadvantageous to them. Some of the United Kingdom Ethic laws that regulate functionalities of these companies will be discussed (Report Linker 2011). What supply chain is will be disclosed and whether it has any advantage as a competitive source (Kate & Anna 2004). Literature review This literature review explains ethical sourcing and develops arguments for and against its adoption by major retailing organizations. It is acknowledged that different countries have different rules, regulations a nd laws governing sourcing (Lynn 2007). This dissertation, however, focuses on how major retailers source products for selling in the developed economies of the UK, EU and US. Whilst the overall objective of this review is to, critically, examine ethical sourcing and its adoption by some firms (but not by others), it will help develop a model that can be used to see how â€Å"ethical† organizations actually are. Sourcing ethically, in a scholarly capacity, means the upholding of at most moral and decent values during the process of developing commodities. It is a perfect blend of sustainability, values imbibed in a business practice and social responsibility

BP Stakeholder and Reputation Management Research Paper

BP Stakeholder and Reputation Management - Research Paper Example Stakeholder management helps a business to achieve the desired goals more efficiently by maintaining the investors’ satisfaction levels. It also enables the organizations to retain the existing investors and recruit new ones in an ethical and responsible manner. Stakeholder management forms an important part of business through which an organization can develop its goodwill. Every sound organization needs to satisfy the stakeholders in order to sustain in the business (Carroll and Buchholtz, 2014). Reputation management involves activities that a business must perform in an attempt to create or upkeep goodwill in the eyes of the public (Argenti and Druckenmiller, 2004). It involves identification of the individuals’ expectations from a business and taking necessary steps to ensure that the general consensus is in parity with the organizational goals. This term was originally used to denote public relations that are necessary for a company in order to sustain in the market. The disaster turned out to be an issue of search result over the web, following the advancement made in social media, computing, and internet. There are various ethical forms of reputation management such as responding to the customer complaints, restraining sites from displaying incorrect information and utilization of the online feedback to influence the process of product development (Argenti and Druckenmiller, 2004). BP is a multinational oil and gas company that is headquartered in London. It is the fifth largest company in terms of revenue and ranks sixth in terms of production. BP operates in nearly 80 countries.  Therefore, considering the recommendations mentioned, BP can derive greater benefits as well as regain the lost status in the oil and gas industry. Implementation of the suggestions provided can considerably help other oil and gas companies, such as PBGC, to rebuild lost integrity and reputation.

Paraphrasing the Poem entitled “My Last Dutchess” Essay Example for Free

Paraphrasing the Poem entitled â€Å"My Last Dutchess† Essay Look into the wall so that you may see the last of my beloved woman with glee Wondering why upon looking at it comes alive for it is made intensively out of love. Everyday the painter worked expansively as he watched my woman to a pause. Asking for the painter to take a look at my girl and create a painting of her. On the painter’s face, I can see that he is mesmerized by her. I believe in the capacity of the painter – a well known artist. In my eyes I picture you so differently and other would say, If it is her true beauty and I reply, it is. So other now always looks unto her face. Not only had I told the painter that made the woman blushed. I remember after she was painted, she made a wonderful look and say â€Å"Thank you.† It is her smile – the smile that nurtures my being since then until now. But the vestige is her daughter – my daughter. I need to start all over again for it was the destiny of life. Recollecting the surroundings as what the painter created in my woman’s background, Her beauty cast me away, like an â€Å"Innsbruck in bronze† – for me. Reference Browning, R. (1842). My Last Dutchess. Retrieved 26 March 2008. http://wps.prenhall.com/wps/media/objects/680/696357/student_library/pdf/browning.pdf

Business Level Strategies Versus Corporate Level Strategies Business Essay

Business Level Strategies Versus Corporate Level Strategies Business Essay INTRODUCTION Automobile industry is named the industry of industries by Peter Drucker. Since its humble beginning the automobile industry has involved very much with the times. The industry which is dominated by Europe, US and Japan is currently going through extraordinary changes. After a period of steady growth the industry started to decline in 2008, and declined further in 2009. Currently Toyota holds the majority market share of 10.9 per cent; Volkswagen holds 9.2 per cent share while Ford holds 7.2 per cent of the market share. (Datamonitor, 2009) This report explores the business level and corporate level strategies of Honda Motors and also critically evaluated its process of reconciling dichotomies with reference to product related and process related core competencies. The report examines the Mergers and Acquisitions (MA) in the industry, and the impact of debts, potential synergy and new technology has on MA are investigated with current examples. How automobile players have been dealing with the corporate social responsibilities and its impact on the firms are also discussed. The leadership models by the Japanese management model and Western management model are compared and contrasted. APPLICATION OF STRATEGIES Business Level Strategies Versus Corporate Level Strategies Pizam defined business level strategy as the approach taken by an organization to compete in its chosen markets (2005, pp. 54) Micheal Porter (1980) classified strategies into three generic types; cost leadership, differentiation and focus strategy (cited in Pizam, 2005, pp. 54) Each strategy assists the firm in gaining a certain competitive advantage in a particular competitive scope. However Micheal Porter identified unique features for business level strategies for international businesses (Appendix 1); factors of production, demand conditions, related and supporting industries and firm strategy, structure and rivalry (Hitt, Ireland Hoskisson, 2007, pp. 218) A business level strategy of is its research and development. Hondas product development process is respected within the automobile industry for its sheer speed. Reducing lead time, combining productive efficiency with human dignity, mass production reducing the cost and achieving the expense of product variety are some examples of Hondas RD accomplishments. Honda has a wide international production network; with 89 production facilities (Wit Meyer, 2004, pp. 665) Business level strategies determine the number of plants or production facilities and the locations. Corporate level strategies is to identifies which businesses and industries a company should compete in, which value creation activities it should perform in those businesses and how it should enter of leave those businesses or industries to maximize its long-run profitability (Hill Jones, 2009, pp. 285) Corporate strategy in global context focuses on the scope of diversification, both product and geographical. (Hitt, Ireland Hoskisson, 2009, pp. 220) Hitt, Ireland Hoskisson also states that corporate strategy dictates business level strategies in order to standardize the firms products and sharing of resources across countries (2009, pp. 220) While western management assumes that there is bound to be trade-offs between product quality, cost and delivery; high quality meant high cost etc. However the Japanese developed a right-first-time approach which Honda adopts, which is a corporate strategy dictated to enhance the quality, reduces cost and differentiate the products hence a business level strategy. Honda is the first Japanese firm to manufacture automobiles in the North America when it opened its assembly plant in Ohio is also a business level strategy dictated by corporate level strategy. Other corporate strategies include venturing into the vehicle production from producing auxiliary engines for bicycles and venturing into foreign markets too. While they are product-related diversification here is an example of geographical diversification. Shareholding with European company British Leyland (now known as Rover Group) which was one of the least capable automobile manufacturers is a corporate strategy. Honda has production facilities at 33 countries, (Wit Meyer, 2004, pp. 665) it is also a corporate level strategy of geographical diversification (Peng, 2006, pp. 390) The Managing of Dichotomies by Honda Motor Core competencies refer to firms internal attributes that provide a basis for competitive advantage (Peng, 2006, pp. 77) Core competencies provide access to a wide variety of markets, contributes significantly to end products benefit and are not are not easily imitated. (www.quickmba.com) Prahalad and Hamel define a competence as collective learning in an organization especially how to coordinate diverse production skills and integrate multiple streams of technology (1990, pp. 82) Core competence is often acknowledged in the form of tangible and intangible assets. Organizations should pay equivalent amount of attention to its employees competencies once it starts to pursue core competences track (Bergenhenegouwen et al.,1996) Tangible resources and capabilities are financial, physical, technological and organizational (Peng, 2006, pp. 78) For example, the ability to generate internal funds, ability to raise external capital, location of plants, offices, and equipment, access to raw materials and distribution channels, possession of patents, trademarks and copyrights, formal planning, command and control systems, integrated management information systems (Peng, 2006, pp. 78) Hence tangible resources are those which are directly involved in the manufacturing of a product. Intangible resources and capabilities include human, innovation and reputational (Peng, 2006, pp. 78) Examples of intangible resources are knowledge, trust, managerial talents, organizational culture, a supportive atmosphere for new ideas, research and development capabilities, capacities for organizational innovation and change, perceptions of product quality, durability, and reliability among customers, reputation as a good employer and reputation as a socially responsible corporate citizen (Peng, 2006, pp. 78) These factors are mostly involved in the production process. One of the core competencies Honda is famous for is in the advanced internal combustion engines which power the whole range of its products. The case of CVCC (compound vortox controlled combustion) engine designed so in such a way pollutants are not created. While the rest of the industry was battling with ways to clean up the emitted pollutants, Honda designed so that no pollutants were created to clean in the first place. The dichotomy was reconciled in a way there was no trade-off. Refer to Appendix 2 for the framework to integrate markets, platforms and competencies. In the case of VTEC (variable valve timing and lift electronic control) controlled fuel injection electronically, control the ratio of fuel to air according to driving condition, hence what the process required, hence reconciling the dichotomy of fuel economy vs. engine power. Honda is known for its technologically innovative engines, refusal to accept taken-for-granted trade-offs characterizes all aspects of Hondas strategic approach to technological change (Wit Meyer, 2004, pp. 673) Honda also developed an innovative strategy for the planning of production, a strategy which exhibits characteristics of both the traditional dichotomous poles; one pole is large-lot mass production and the other pole is the one piece flow (Wit Meyer, 2004, pp. 675-6) Hondas own innovative strategy overcame this dichotomy and obtained the advantages of large-lot production which is simpler logistics and quality control, fewer chances of error, easier programming of production schedules. (Wit Meyer, 2004, pp. 676) And also the advantages of small-lot production were obtained, those being ability to offer a wider range of products to consumers and greater worker involvement and satisfaction (Wit Meyer, 2004, pp. 676) MERGERS ACQUISITIONS Mergers are commonly characterised as the consolidation of two organizations into a single organization (Schraeder Self, 2003) Acquisitions are the purchase of one organization from another where the buyer or the acquirer maintains control (Borys and Jemison, 1989) Car-making may be one of the worlds most competitive big industries, but rival producers have always been ready to cooperate on expensive new technologies and products when the cost or risk of going it alone was too high (www.ft.com) The search for partners is now heating as automakers pursue to build scale, lower costs, and pool efforts in zones like small cars, vehicle electrification, and new or emerging markets (www.ft.com) Automotive mergers and acquisitions take place to increase market share, attain economies of scale and augment product ranges (www.reportsure.com) Figure 1; driving factors of Mergers Acquisitions for the years 2007, 2008 2009 Source: KPMGs Global Auto Executive Survey, 2010, pp. 20 Too much Debt and Risk of Bankruptcy Companies believe that a rising rate of MA will be driven partly by crisis factors, and partly by the long-term imperative of finding and developing new technology solutions for a changing market (the continued high stress that companies place upon new technology development KPMGs Global Auto Executive Survey (2010, pp. 20) KPMG predicts that indebtedness will be the top of M A. Also states that all cost pressures now seen as less significant (KPMGs Global Auto Executive Survey, 2010, pp. 20) According to the survey (KPMG Global Executive Survey, 2010), the specific global drivers of alliances, mergers and acquisitions will be driven by crisis factors such as too much debt and risk of bankruptcy 89 per cent (Car Magazine, May, 2010) Ford Motors partnered with Mazda since 1970s to raise cash and to focus on its own brand/ business. (www.ft.com) PSA Peugeot Citroen Toyota produces small cars in Czech Republic. (www.ft.com) As the surveys, too much debt and risk of bankruptcys impact on Mergers and Acquisition (MA) is very high and it is one of the driving forces of MA. Volkswagen in December 2009 announced its plans to buy 19.9 per cent of Suzuki which is to take a stake of approximately 3 per cent of Volkswagen. (www.ft.com) General Motors owned an equity stake in Suzuki from 1991 to 2008 Potential for Product Synergies Companies in auto industry merge to gain product synergies. GM has a contract with Renault to produce vans in Luton, England since 2001 to 2013 (www.ft.com) Daimler announced strategic partnership with Renault and Nissan April 2010; three companies are to build small car engines and vans together. BMW and PSA Peugeot Citroen produce petrol engines together. (www.ft.com) PSA Peugeot Citroen corporates with Mitsubishi Motors on cross over vehicles, electric cars and a joint plant opened in April 2010 in Kaluga, Russia. They also announced that they would work together to develop a compact sport utility vehicle (www.ft.com) Access to New Technologies and Emerging Markets Nissan has OEM (original equipment manufacturer) / supply deals with Mitsubishi, Suzuki, Mazda and Chryslers Dodge brand (www.ft.com) Volkswagen currently owns 49.9% of Porsches sports car business, and Porsche owns 51.1% of Volkswagen. Talk of full-fledged merge is taking place (www.ft.com) Porshe corporates with Volkswagen and its luxury marque Audi sports vehicles. (www.ft.com) PSA Peugeot Citroen with Fiat produces light commercial vehicles and vans. (www.ft.com) New products and new technologies have moved higher among their highest ranking concerns, from an already high leading position in last years survey (KPMG Global Auto Executive Survey, 2010) ROLE OF CSR IN THE AUTOMOBILE INDUSTRY A happy convergence between what your shareholders want and what is best for millions of people Kofi Anan (2001) Corporate social responsibility raises consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks (K. Davis, 1973 cited in Peng, 2006, pp. 484) Carroll (1999, p. 286) suggests that social responsibility covers the conduct of a business so that it is economically profitable, law-abiding, ethical and socially supportive. Global automotive makers and suppliers are also seen to be more corporate responsible now. Going green is a common term in the industry now. Each company in the industry is coming up with a better plan each day. GM has promotes a building greener car, electric car experience and also teach green campaign. (www.gm.com) Toyota has numerous CSR activities as development of environmental vehicles, design for recycling, pedestrian safety campaign, vehicle safety, and customer first, support of art to name a few (www.toyota.com) Refer to Appendix 3 for overview of Toyotas CSR activities. Apart from producing many models of hybrid cars, Honda has devised a Honda LCA (Life Cycle Assessment) system. Honda is determined to measure, assess and analyse the full impact of its products on the environment. Honda LCA will monitor its products entire life cycle from the development and production stages to the final disposal at the end of its life. According to Honda, this will help them identify specific issues at each level of corporate activity and set corresponding targets for action. CSR helps to create shareholder value, increase revenue base, helps in strategic branding, operations efficiency, provides better access to capital, enhance human intellectual capital and also lower business risks (www.csrsingapore.org) Today investors are more aware of corporate governance and social responsibility, associating a firm to these features promote the image of the company and hence better access to capital and other such advantages. Therefore, organizational performance increases. Financial advantages sought in the name of corporate social responsibility are creating shareholders value, increased revenue base, better access to capital and lower business risks. Non-financial benefits are enhanced goodwill of the organisation, strategic branding, and operation efficiency and enhanced human and intellectual capital. While the players of automobile industry focus so much on CSR, the companies are being criticized too. Polonsky and Jevons (2009) states that criticisms has been raised in regarding to global automobile manufacturers who endorse fuel-efficient vehicles of various descriptions, while also producing fuel guzzling SUVs targeted at inner-city users. CSR is a very serious matter. CSR is not only associated with responses to crises, but it has also led to many crises, due to negligence of responsibilities as a corporate citizen. Non-compliance can be expensive and can even push corporations into existence threatening controversy- poor labour relations or public hostility. (Keinert, 2008, pp. 103) And threatening government or civil society action can lead to a slump in sales, lost market share and even withdrawal of capital (Keinert, 2008, pp. 103) LEADERSHIP; JAPANESE STYLE VS. WESTERN STYLE Japanese and American Management are 95% the same, yet differ in all important respects Takeo Fujisawa, founder of Honda Motor Company. In the early 1960s to the 1990s, Japanese management claimed a prominent place in the consciousness and management discourse of the west. Western management involves mass, standardized and fordist production while the Japanese prefer lean, flexible and post-fordist production. A mass production system focuses on producing a single product for a mass market, where else lean production focuses on producing a finite set of standard products designed for a segmented markets demand (Swamidass, 2000, pp. 451) Fordism is the transformation of the economy from agricultural to industrial to mass production to mass consumption. (www.willamette.edu) Where western management model is based at this, the Japanese management mode is post- fordist, the period after that. Mass production equals to fordist standardized production and lean production creates flexible and post-fordist creations. In the work process, western models are taylorist, do workers and unskilled workers. The Japanese work process consists of post-taylor, think workers and polyvalent. Taylorist is a means of detailing a division of labor in time-and-motion studies and a wage system based on performance (www.vanderbilt.edu) which western work process adheres to. The workers are do workers as in, they do what is asked, and thinking is not necessary nor is skilled workers. While the Japanese are post-taylorist, their workers are thinkers, they are to think and come up with ideas for the tasks they are entrusted with. Also under Japanese management style, workers are multi skilled. Production, organization and logistics involve large-lot production, just-in-case method of inventory management and push system. The Japanese management model focuses on, small-lot production, just-in-time and pull system. Just-in-time method is a fool proof method where production, purchasing and distribution all happens just-in-time. In western management model is just-in-case method is more popular. (www.leanmanufacturingconcepts.com) Pull models strive to persistently expand the choices offered while at the same time assisting people to find the resources that are most applicable to them unlike push models treat people as passive consumers (even when they are producers/workers) whose needs can be expected and shaped by centralized decision-makers. (www.johnhagel.com) The organization structure is vertical with fragmented duties and individual as responsible. In the Japanese management model, the structure is horizontal, with broad duties for employees and group is responsible for success of failure. Labour relations are job control focus, cross-company unions and hire and fire strategy. In the Japanese model labour relations are employment conditions focused, enterprise unions and job-for-life employed. Western organizations have separated firms and there are distant inner-firm relations, where else in the Japanese management model it has Keiretsu families and there is close inter-firm relations. There is no better or worse model among the two, as it depends on the situation. And there is no single good method, the situation and the issue in question should be closely examined before choosing the most appropriate model. Just like Honda Motors has, it does not practice one style of management model, the model chosen depends on what the best one is for the firm, given the situation. CONCLUSION The performance of the industry is forecast to accelerate, with an anticipated CAGR of 11.5% for the five year period 2009-2014, which is expected to drive the industry to a value of $2,526.6 billion by the end of 2014 (Datamonitor, 2010)

Marketing Strategies of Primark

Marketing Strategies of Primark 1.0 Introduction The research report under consideration is aimed to explore the significant role played by Marketing Strategies in todays modern and dynamic business environment. Marketing has gained substantial importance and has become first priority of decision makers in any organisation. This document presents a research report analyzing and forecasting marketing environment faced by leading retailer Primark with special focus on competitive analysis. Primark Stores Ltd, an Irish upstart and subsidiary of Associated British Foods, is second largest clothing retailer in terms of sales and revenue with its existence mainly in Ireland, UK, Spain and expanding further in the Europe. It is believed that soon it will become leading clothing retailer. This extensive research is aimed at exploring current marketing strategies adopted and evaluating their effectiveness. The critical review of current segmentation, targeting, positioning and branding strategies of Primark and an extensive market analysis is carried out to suggest future marketing strategies and growth areas and to improve and sustain quality of services provided. The expected outcomes of document are recommendations to use marketing strategies tactically in decision making to enjoy sustainable growth. 1.1 Reason for choosing the topic I have selected this topic realizing the fact that in todays intensively competitive business environment, financial successof any company depends on combined efforts of its financial strategy and marketing strategy. In fact, only those companies thrive in business who works closely with their customers; and, marketing has become a successful tool to create a relation with customers indirectly. From small to large, every organisation is realizing that effective marketing strategies can add value and exert tremendous influence over their ability to attract customers, leaving positive impact on companys performance and profitability. â€Å"Marketing is defined as management process that identifies, anticipates and satisfies customer requirements profitably. It involves integrated analysis, planning and control of marking mix variables (Product, Price, Promotion and Distribution) to satisfy both individuals and organizations objectives (Lancaster and Massingham, 1999). Marketing Environment consists of actors; and forces outside that affect marketing managements ability to develop and maintain successful relationships with its target customers (For further information on Marketing Environment, see Appendix I). 1.2 Reason for choosing Retail Industry and Primark Reason for choosing retail industry for research project is because it is a high profile and constantly changing business at the sharp end, but now-a-days, retail industry in UKis under high pressure as key factors like troubled mortgage and housing market, rising fuel prices and utility bills, high interest rates in UK are challenging retail environment as compared to years of strong growth between 2002 and 2004. Formally retail is defined as â€Å"sale of commodities to household or ultimate consumers† (Barry and Evans; 1986).Retail industry can be categorised in various sectors as food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers etc. But now discount, budget or value retailing in UK has taken on a higher profile over recent years despite effects of recession. Especially interests have largely centered on growth of value or discount clothing retail industry. The organisation under focus in this report is Primark known for selling clothes at budget end of market and it is second largest clothing retailer in UK in terms of sales and revenue. Reason for choosing Primark is its wonderfully sustained growth in the worst recession times of history. Retail clothing industry is a fast moving and complex, high profile and constantly changing business environment which demands that marketing process of a large retail organisation like Primark should be managed strategically. Report is aimed at evaluating marketing strategy of Primark and to determine its effectiveness. 2.0 Primark: A Brief Overview Of The Business Primark is a brilliant and unique organisation with a mission statement to enrich the life of everyone with fashionable clothing regardless of social status. It emerged as major force in the British retail industry, contributing through its low price value and great quality fashion products for everyone in society as a whole and leaves remarkable impact on social, environmental and ethical behavior of people. Primark does not rip off its customers and presents excellent example of it motto which states â€Å"look good, pay less† Primark, (2010). Most of their clothes are bought from same factories as other fashion retailers and people producing them are paid exactly the same whatever label and whatever price in shop. Companys success is based on sourcing supply cheaply, they buy directly from factories without involving any agents, making clothes with simple designs and fabrics, only making them in the most popular sizes, buying stock in huge bulks and varieties and targeting young, fashion-conscious buyers under 35s, offering them high quality, fashion basics at value for money prices. They are able to offer such good value and good quality because of low mark-ups and big volumes. Their overhead costs are extremely low as they do not run expensive advertising campaigns; instead they have wonderful strategic marketing approach that stands them out. 3.0 Marketing Strategy Of Primark Retail clothing industry is a fast moving and high profile business environment which demands that marketing process of a retail organisation should be managed strategically. Strategy of an organisation is roadmap towards attainment of its long term goals and objectives. Strategic marketing management involves implementing principles of strategic management in the context of marketing function in organisation. At corporate level, marketing inputs (e.g., competitive analysis, market dynamics, and environmental shifts) are essential for formulating a corporate strategic plan. Primark has well organized strategic Target marketing and Product marketing approaches in place. 3.1 Target Marketing Approach Strategic marketing is about achieving maximum possible differentiation over competition in meeting customer needs, gaining and sustaining competitive advantage and capitalizing on corporate strength and capabilities. In todays dynamic environment, it is highly important for companies to relate characteristics and attributes of their products to customer requirements more closely. Firms are more concerned with the most commercially attractive segments of market for a given product. This not only increases opportunity but also reduces overall costs incurred by company. This process is called target marketing and it must be carried out systematically to be effective and for this purpose it can be divided into three stages as in Figure; 3.1.1 Segmentation At first stage of segmentation, overall market is divided into distinct groups of buyers who are likely to respond favourably to different products, services or marketing mix. Company needs to determine most appropriate basis for segmentation, identify characteristics for each segment and develop criteria to evaluate their commercial attractiveness and viability. Market segmentation allows managers to see clearly the diversity within their markets and uncover opportunities that may exist or segments whose needs have not been properly met by other offerings. Figure, depicts segmentation criteria for consumer market, determines base of segmentation and explains variables for each base As Primark is tagged a value clothing retailer, clothing is most important and leading item in its product portfolio follower by footwear. Its marketing segments are evaluated on basis of clothing and footwear. Although all above determined segmentations bases and variables are important but demographic factors are the most straight forward base for segmenting Primarks consumer market, as they are most meaningful. Main demographic variables for Primark consumer market are identified as in charts below. All demographic factors are identified according to their percentage relative attractiveness for targeting them depending upon their market share for Primark. Hhighlighted segments in diagrams are identified as most meaningful for Primark and they must be targeted to gain marketing objectives. 3.1.2 Targeting Next stage of market targeting focuses on evaluating and selecting one or more previously identified market segments at which to direct marketing resources, developing an appropriate marketing mix for them and develop segment coverage strategy. This selected segment is made focus of comprehensive marketing plan. Kottler (1984) suggested that in order for market segmentation to be effective each of the segments must be distinct, assessable, measurable, and profitable. Once determined which segment attractiveness factors are important, evaluate each of those factor against selected segments using segment attractiveness evaluation matrix below; There are four different targeting approaches can be considered to develop marketing mix to meet marketing objectives. Undifferentiated marketing is used for one marketing mix, targeted towards whole market and marketing mix (Price, Place, Product, Promotion, Distribution), and targets towards everybody. Differentiated marketing is used for multiple marketing mixes and involves multiple products, targeted towards multiple segments. Focused marketing is for one marketing mix and multiple segments with focus on one segment in particular, who will have control over other segments. Customised marketing is used for one marketing mix per customer as in figure below; For Primark, targeting strategy that I have decided to use is differentiated marketing strategy because we have multiple products and consumers can be segmented into multiple segments, hence best approach to be followed is differentiated marketing approach. Different segments identified are based on age, sex, life style, income level and social status and we have multiple products portfolio that can be targeted towards these various segments. 3.1.3 Positioning In third phase of product positioning all marketing mix elements are designed to fit a given place within a particular segment. This is how consumer perceives products relative position to competitors product which is highly important. It is like developing a marketing strategy aimed at creating and maintaining a desired concept and image for a product or service in consumers mind (See Appendix V for further information). Key to success is identification of attributes that are considered to be more important. Through market research we can identify what factors (attributes) are key drivers of a consumers preference for a brand. For instance, it was identified from a sample of female teenagers that were surveyed, that being trendy and stylish, having a good range of clothing, and good brand reputation, were most important factors for this target market when selecting a preferred brand Young Dimension of fashion retailer Primark. Brand positioning provides insight into brand performance and gives important inputs for marketing communications used to support a brand. Through communications, especially advertising, information can be conveyed about each attribute and in doing so adjust perceptions customers have of brand. As Primark need to reposition the perception market has of its brands from range and quality of clothing to be more trendy and stylish. Primark has emphasized more on in-store service and convenience; and as Budget Fashion retailer, they might want to maintain their current positioning of low price, affordable, but also good value for money. 3.2 Product Marketing Approach A companys performance is closely linked to its marketing strategies. Each companys strategy must be unique since each company is different with respect to customer, brands and competitors. I used Ansoff Matrix to determine product marketing strategies for Primark to set the directions for its business. With this matrix; I plot current and potential products along one axis and current and potential new markets along other axis. Thus it demonstrates low and high risk options and helps to think about business growth with new or existing products in new or existing markets. Each cell of matrix suggests a particular strategic approach. Output from Ansoff matrix is a series of suggested growth strategies. Market penetration is a growth strategy where business runs as usual and focuses on selling existing products into existing markets with good information on competitors and on customer needs. Primark can maintain or increase market share of its current products by a combination of competitive pricing strategies, advertising, sales promotion. Primark has extensive portfolio and it cans secure dominance of growth markets and drive out competitors by more aggressive promotional campaign. For example Primark brand Active, supported by a pricing strategy designed to make market unattractive for competitors. Primark must uses internal promotion strategy by introducing loyalty schemes and increases its usage by existing customer. One of penetration strategy adopted by Primark is expansion of shop floors and opening new stores. Market development is a growth strategy where business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including moving to new geographical markets; for example exporting product to a new country, new product dimensions, new distribution channels, or different pricing policies to attract different customers or create new market segments. I suggest Primark to move online by launching high tech website for online sales. Product development is growth strategy where business aims to introduce new products into existing markets. It requires development of new competencies and to develop modified products which can appeal to existing markets. Diversification is a growth strategy where a business launches new products in new markets. This is an inherently more risk strategy because business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, it must have a clear idea about what it expects to gain from strategy and an honest assessment of potential risks. Analysing Primarks position and its strategies over past decade, we can better construct a growth strategy for Primark using Ansoff matrix model below in Figure; 4.2.1 Product Portfolio Analysis Marketing mix refers to set of marketing ingredients and tools a company can use to pursue its marketing objectives in target market. According to Lancaster and Massingham; (1999), it is at marketers decision to choose from an extensive set of marketing components to find right combination while marketing a product. 4Ps form basis of marketing mix. Kotler (1996) describes, â€Å"Marketing Mix is a social and managerial process by which individuals and groups achieve what they need and want through creating and exchanging products and value with others†. Marketing Mix is viewed as combination of elements that contribute to success of an organisation. If market research is carried out effectively, a company can plan a promotion for right product, at right price, and to get it to their chosen market, in right place.Getting this mix right is critical in order to successfully market a product. 4Ps are Product, Price, Promotion, Place as shown in figure below; Primark needs to combine various elements of marketing mix in order to achieve both a competitive advantage in market place and company objectives. Although company has control over these elements of marketing mix, but must cater elements in companys environment over which it has little or no control (figure above). For organisations like Primark although marketing mix must be is consumer-orientated catering not only profitability but also considering customer needs as in figure, Table below shows some of marketing mix decisions for Primark including aspects from each of marketing mix elements. 4.3 Brand Strategy A successful marketing mix contributes to good marketing of a product; hence there must be a brand strategy in place. American Marketing Association (AMA) defines a brand as a name, term, sign, symbol or design, or a combination of them intended to identify goods and services of one seller or group of sellers and to differentiate them from those of other sellers†. (See Appendix VI for characteristics of a brand). A strong brand strategy can increase awareness of a company and its offerings in such a way that establishes strong feelings and reactions and a favorable view towards company as a whole. To begin development of brands strategy for Primark, there must be clear identification of Primary Target Customer and/or Client, Competition Product and Service Mix, Unique Selling Proposition First step in developing brand strategy is defining brands. By defining brand, its easy to create foundation for all other components to build on. Brand definition serves as measuring stick in evaluating marketing strategies. Primark has an extensive brand portfolio; Brand portfolio usually refers to companys set of brands and/or products. The logic behind having a portfolio of brands rather than a single brand is possible diversification and risk minimization. Hence brand portfolio is a treasure trove. Next step is to determine our brands objectives, Primarks branding objectives include: Delivers message clearly Confirms your credibility Connects your target prospects emotionally Motivates buyer Concretes User Loyalty Gaining a specific number of new clients in next year Positioning company as an industry leader in next 12 months To succeed in branding company must understand needs and wants of your customers and prospects. Brand objectives should be comprised of company personality, image, core competencies and characteristics. The impressions that it makes as well as words people will use to describe company to others, are basic framework of a brand.   With a strong brand company builds credibility, has more influence on its market, and motivates customers and clients to purchase from it. If done correctly company will be looked at as a leader not a follower. Identifying marketing targets enables company to find opportunities available. It gives information needed to focus on buyers that are interested in what company has to offer. This can save both time and money in an ever-changing business environment. Power of brand relies on ability to focus target audiences. That is why defining target market will help to strengthen Primarks brands effectiveness. Target market for Primark is people up to age of 35 who are fashion conscious. Next step in developing Primarks brand strategy is to perform a careful analysis to determine principal barriers that it may face. These barriers are also known as market conditions that can keep your product or service from achieving success. The potential barriers in deploying Primarks brand strategy can competition, timing, financing, location, lack of demand, suppliers not meeting demands and targets. In order to face these obstacles its important to spend time doing a careful analysis of products or service to assist in developing brand, and positioning products in the market. Last step in brand strategy is branding companys identity in marketplace where image is all about appearance of packaging. Its important to realize that packaging always either has a negative or positive influence on purchaser. A negative impression can detour a potential customer, just as a positive reaction can influence a customer to buy. A time to pay special attention to packaging is when going to launch a new brand. If youve already built a strong brand that others recognize often people may not pay as close attention to packaging. Packaging is judged and represented by business cards and stationery, web site, answering system, presentation of finished products. Brand equity does not develop instantaneously. A brand needs to be carefully nurtured and marketed so consumers feel real value and trust towards that brand. When a company manages its brands it has a number of strategies it can use to further increase its brand value. (See Appendix VI for further explanation). Brand strategies that are more suitable for Primark are line extension and introduction of new brands. Primark must focus on its brand management as its a dynamic and a continuous process that needs consistent investment of time and it must be allocated a specific budget as it is much more than mere marketing communications. Due to intangible nature of branding, results may not accrue in a short period of time a it takes time and reinforcement to build customer loyalty. Successfully out-branding its competitors is a continuous battle for hearts and minds of your customers. Proposition that Primarks brand strategy makes is very compelling, attractive and unique among competitiv e offerings. It must also be consistently reinforced throughout all phases of an organization, from senior executives to customer service, business development and even business partners. Primark is respected for quality of its products and cheap prices. If we briefly review business environment and other factors identified in this report for Primark then we may realize that consumer behaviour is changing and business environment evolving across retail industry. Concern is rise in suppliers demands regarding price and costs. If it continues to rise steeply it will damage profits that it is currently enjoying. Reviewing forces and factors faced by Primark and their impact on organisation, it is obvious that Primark is facing many challenges and standing at verge of it survival in long term. Market Research World, 2011 revealed that value fashion sector sees worst decline for first time in over 16 years much to gain of higher-priced retailers, reveals data by TNS Worldpanel Fashion. While fashion discounters such as Primark, Tesco, George and Matalan saw a phenomenal sales increase of nearly 30% last summer, growth has now ground to a hold with sales falling by 1% over last six months. In contrast, sales of most expensive clothing are up by 4%, as shoppers head to generally more expensive retailers such as multiples and mail order retailers. Clothing industry has been globalised. Strategies followed by clothing firms, to survive in a context of strong pressure from retailers and from competition from low-wage countries, are a combination of two trends. First trend is relocation of production to low-wage countries; second one is the development of six added-value activities: niche, Quick Response, full package, innovation, branding and retail. Elaine Giles, Research Manager, TNS says, â€Å"Shoppers are starting to favour higher priced retailers and premium end of market is performing well. Growth of value sector last year came on back of new store openings and expansions that brought an influx of new buyers, but now sector seems to have reached saturation point. The only way, budget retailers can continue their success is to increase spend of existing buyers, something they may struggle to do given current retail climate.† 4.0 Strategic Marketing Environment Analysis Primark is one of the leading value clothing retailers in UK. It is highly crucial for an organization like Primark to periodically review its marketing environment to gain competitive advantage in market. Discount cloth retailing in UK has several characteristics including clearance outlets, core business discounters, planned purchasing at high volume, own-label or branding, relationships with manufacturers, attracting customers with good image and service. There are three different analytical tools used to assess marketing environment of an organisation; Porters Five Forces Analysis, SWOT Analysis and PESTLE Analysis. 4.1 Porters Five Forces Analysis First of all Porters Analysis is carried out which is a technique for identifying forces which affect competition level in industry as shown in figure A below; The threat of new entrants in market is a critical element haunting Primark much as there are less entry barriers including low entry costs, high volume of suppliers, vast market in India and china, higher growth space in market, economies of scale, low capital requirements, access to distribution, government policy, low cost product design, access to necessary inputs. But new entrants in industry are not likely to cut their price to defend their market position. In an industry experiencing fast market growth, patents, proprietary knowledge, and brand reputation are also considered as barriers for companies entering industry. Strategic position of a company depends upon the extent to which what it offers is unique and cannot be replaced by something else. Primark has strong brand portfolio which is its uniqueness. As for some of products, like Primark cheap clothing there are alternatives. But there is no substitute for low price of Primarks products. Determinants of these substitution threats include relative price of substitutes, buyer propensity to substitute. Buyers/customers have greatest impact on Primarks strategies as its vision and strategies are customer focused. Hence, it has to cater changing customer trends, their demands and requirements. Customers volume, customer information level and trends, substitute products pull through, price, product difference, brand identity, impact on quality, buyers profit and incentives are few factors that Primark is facing as major challenge in competitive market. Suppliers might have high impact on Primark if they are bigger company and have less competitive market for their products. Primark is facing big challenge from supplier as it has good and long term relationships with its suppliers build on trust but recently three of its main suppliers are found involved in child labour and Primark has to cut-off ties with them immediately which is definitely a big blow for Primark. Primark pays its supplier competitive price for their products to retain them. Primark maintains substitute inputs, and high volume of supplier to avoid extra costs. Apart from five forces identified by Porters Analysis, there are other factors revealed by PESTLE Analysis challenging Primarks position in competitive market, in figure below; (For PESTLE Analysis, refer to Appendix II; and for SWOT Analysis, Appendix III) Strategic marketing analysis of Primark, using different analysis tools reveal that Primark is expanding globally and being in the global market; Primark has adopted an approach of â€Å"Think globally, Act locally† as stated by Armstrong, (2006). They are expanding globally but cater needs of local market and fashion trends in local culture. Primark supports UKs global role by showcasing the best of British fashion to a global customers as well as it reflects how it builds social cohesion and business ethics between customers and its suppliers. Primark faced a major blow to its reputation on 24 June, 2008 after being exposed by and undercover report by BBC exposing it using child labour. Afterwards, Primarks marketing strategy mainly focused to promote itself as ethical organisation with a clear and strict code of conduct to which all suppliers must adhere and which forms part of the terms of their contract. Primark supports nearly two million people through its supply contracts worth  £700 million and is dedicated to improve their standard of living and quality of life. For this, Primark has established ‘Primark Better Lives Foundation (Primark Ethical Trading, 2011 a). In response to the allegations of use of child labour by its suppliers, identified by Panorama (BBC program) Primark stopped buying from three factories in southern India for breaking its Code of Conduct. It also took other major initiatives and is now active member of ETI that announce it ‘Achiever in year 2009-2010 independent audit (Primark Ethical Trading, 2011 b). (For further information on ETI and Primark code of conduct, see Appendix IV) Further apart the positions, greater the opportunity for new brands to enter market, simply because competition is less intense. For example, in fashion retailing there are numerous brands in marketplace all competing with each other across differing core attributes, brand reputation, store presence, price, and clothing quality or trendy and stylish. To show how differing brands might be positioned relative to each other using attribute scores for each brand of fashion retailer we can measure and map brand positioning for respective brands. Figure below shows positioning of a number of fashion retailers using dimensions of price, store presence, and trendy and stylish. Using this list of drivers we can further depict on what we call a perceptual map how different competing brands of fashion retailers in market are positioned according to these drivers.   Understanding complexity associated with different attributes and brands can be made easier by developing a visual representation of each market. These are known as perceptual maps and they are used to determine how various brands are perceived according to key attributes that customers value. Perceptual mappingrepresent a geometric comparison of how competing products are perceived (Sinclair and Stalling, 1990). One thing to note is that closer products/brands are clustered together on a perceptual map, greater the competition. Mapping can provide significant insight into how a market operates. It provides marketers with an insight into how Primarks brands are perceived and it also provides a view about how their competitors brands are perceived. In addition to this substitute products can be uncovered, based on their closeness to each other (Day et al., 1979). All of this data reveals strengths weaknesses that in turn can assist strategic decisions about how to differentiate on attributes that matter to customers and how to compete more effectively in target market. 4.2 Competitor Analysis Like any other business, Primark is also facing tough competition from George at ASDA, Tesco, Marks Spencer, TK Max, Costco, Next, Zara, New Look, Peacock and Matalan. Analysis for each major competitor determines that Primark has better business strength and high market share. It has good financial strengths and high profitability but relatively poor quality of management and low standards of technology position. Primark is paying least attention to its marketing strategies. Marketing represents boundary between marketplace and company, and knowledge of current and emerging happenings in marketplace is extremely important in strategic planning exercise. In relation to competition, several external forces and environmental changes are faced by Primark that need to be considered to formulate its marketing strategy. Currently, Primark is facing high competition with quality competitors like Peacock, Matalan etc. They are offering cheap products as well and growing at tremendous speed, threatening position of Primark. Most of Primark customers are switching to rivals because of their quality products and good marketing strategies which Primark lacks. Marks and Spencer, the biggest rival of Primark has very extensive marketing strategies with strong brand portfolio. They do advertisement on almost every media available; while Primark do not use even single media for advertisement. Marks and Spenc Marketing Strategies of Primark Marketing Strategies of Primark 1.0 Introduction The research report under consideration is aimed to explore the significant role played by Marketing Strategies in todays modern and dynamic business environment. Marketing has gained substantial importance and has become first priority of decision makers in any organisation. This document presents a research report analyzing and forecasting marketing environment faced by leading retailer Primark with special focus on competitive analysis. Primark Stores Ltd, an Irish upstart and subsidiary of Associated British Foods, is second largest clothing retailer in terms of sales and revenue with its existence mainly in Ireland, UK, Spain and expanding further in the Europe. It is believed that soon it will become leading clothing retailer. This extensive research is aimed at exploring current marketing strategies adopted and evaluating their effectiveness. The critical review of current segmentation, targeting, positioning and branding strategies of Primark and an extensive market analysis is carried out to suggest future marketing strategies and growth areas and to improve and sustain quality of services provided. The expected outcomes of document are recommendations to use marketing strategies tactically in decision making to enjoy sustainable growth. 1.1 Reason for choosing the topic I have selected this topic realizing the fact that in todays intensively competitive business environment, financial successof any company depends on combined efforts of its financial strategy and marketing strategy. In fact, only those companies thrive in business who works closely with their customers; and, marketing has become a successful tool to create a relation with customers indirectly. From small to large, every organisation is realizing that effective marketing strategies can add value and exert tremendous influence over their ability to attract customers, leaving positive impact on companys performance and profitability. â€Å"Marketing is defined as management process that identifies, anticipates and satisfies customer requirements profitably. It involves integrated analysis, planning and control of marking mix variables (Product, Price, Promotion and Distribution) to satisfy both individuals and organizations objectives (Lancaster and Massingham, 1999). Marketing Environment consists of actors; and forces outside that affect marketing managements ability to develop and maintain successful relationships with its target customers (For further information on Marketing Environment, see Appendix I). 1.2 Reason for choosing Retail Industry and Primark Reason for choosing retail industry for research project is because it is a high profile and constantly changing business at the sharp end, but now-a-days, retail industry in UKis under high pressure as key factors like troubled mortgage and housing market, rising fuel prices and utility bills, high interest rates in UK are challenging retail environment as compared to years of strong growth between 2002 and 2004. Formally retail is defined as â€Å"sale of commodities to household or ultimate consumers† (Barry and Evans; 1986).Retail industry can be categorised in various sectors as food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers etc. But now discount, budget or value retailing in UK has taken on a higher profile over recent years despite effects of recession. Especially interests have largely centered on growth of value or discount clothing retail industry. The organisation under focus in this report is Primark known for selling clothes at budget end of market and it is second largest clothing retailer in UK in terms of sales and revenue. Reason for choosing Primark is its wonderfully sustained growth in the worst recession times of history. Retail clothing industry is a fast moving and complex, high profile and constantly changing business environment which demands that marketing process of a large retail organisation like Primark should be managed strategically. Report is aimed at evaluating marketing strategy of Primark and to determine its effectiveness. 2.0 Primark: A Brief Overview Of The Business Primark is a brilliant and unique organisation with a mission statement to enrich the life of everyone with fashionable clothing regardless of social status. It emerged as major force in the British retail industry, contributing through its low price value and great quality fashion products for everyone in society as a whole and leaves remarkable impact on social, environmental and ethical behavior of people. Primark does not rip off its customers and presents excellent example of it motto which states â€Å"look good, pay less† Primark, (2010). Most of their clothes are bought from same factories as other fashion retailers and people producing them are paid exactly the same whatever label and whatever price in shop. Companys success is based on sourcing supply cheaply, they buy directly from factories without involving any agents, making clothes with simple designs and fabrics, only making them in the most popular sizes, buying stock in huge bulks and varieties and targeting young, fashion-conscious buyers under 35s, offering them high quality, fashion basics at value for money prices. They are able to offer such good value and good quality because of low mark-ups and big volumes. Their overhead costs are extremely low as they do not run expensive advertising campaigns; instead they have wonderful strategic marketing approach that stands them out. 3.0 Marketing Strategy Of Primark Retail clothing industry is a fast moving and high profile business environment which demands that marketing process of a retail organisation should be managed strategically. Strategy of an organisation is roadmap towards attainment of its long term goals and objectives. Strategic marketing management involves implementing principles of strategic management in the context of marketing function in organisation. At corporate level, marketing inputs (e.g., competitive analysis, market dynamics, and environmental shifts) are essential for formulating a corporate strategic plan. Primark has well organized strategic Target marketing and Product marketing approaches in place. 3.1 Target Marketing Approach Strategic marketing is about achieving maximum possible differentiation over competition in meeting customer needs, gaining and sustaining competitive advantage and capitalizing on corporate strength and capabilities. In todays dynamic environment, it is highly important for companies to relate characteristics and attributes of their products to customer requirements more closely. Firms are more concerned with the most commercially attractive segments of market for a given product. This not only increases opportunity but also reduces overall costs incurred by company. This process is called target marketing and it must be carried out systematically to be effective and for this purpose it can be divided into three stages as in Figure; 3.1.1 Segmentation At first stage of segmentation, overall market is divided into distinct groups of buyers who are likely to respond favourably to different products, services or marketing mix. Company needs to determine most appropriate basis for segmentation, identify characteristics for each segment and develop criteria to evaluate their commercial attractiveness and viability. Market segmentation allows managers to see clearly the diversity within their markets and uncover opportunities that may exist or segments whose needs have not been properly met by other offerings. Figure, depicts segmentation criteria for consumer market, determines base of segmentation and explains variables for each base As Primark is tagged a value clothing retailer, clothing is most important and leading item in its product portfolio follower by footwear. Its marketing segments are evaluated on basis of clothing and footwear. Although all above determined segmentations bases and variables are important but demographic factors are the most straight forward base for segmenting Primarks consumer market, as they are most meaningful. Main demographic variables for Primark consumer market are identified as in charts below. All demographic factors are identified according to their percentage relative attractiveness for targeting them depending upon their market share for Primark. Hhighlighted segments in diagrams are identified as most meaningful for Primark and they must be targeted to gain marketing objectives. 3.1.2 Targeting Next stage of market targeting focuses on evaluating and selecting one or more previously identified market segments at which to direct marketing resources, developing an appropriate marketing mix for them and develop segment coverage strategy. This selected segment is made focus of comprehensive marketing plan. Kottler (1984) suggested that in order for market segmentation to be effective each of the segments must be distinct, assessable, measurable, and profitable. Once determined which segment attractiveness factors are important, evaluate each of those factor against selected segments using segment attractiveness evaluation matrix below; There are four different targeting approaches can be considered to develop marketing mix to meet marketing objectives. Undifferentiated marketing is used for one marketing mix, targeted towards whole market and marketing mix (Price, Place, Product, Promotion, Distribution), and targets towards everybody. Differentiated marketing is used for multiple marketing mixes and involves multiple products, targeted towards multiple segments. Focused marketing is for one marketing mix and multiple segments with focus on one segment in particular, who will have control over other segments. Customised marketing is used for one marketing mix per customer as in figure below; For Primark, targeting strategy that I have decided to use is differentiated marketing strategy because we have multiple products and consumers can be segmented into multiple segments, hence best approach to be followed is differentiated marketing approach. Different segments identified are based on age, sex, life style, income level and social status and we have multiple products portfolio that can be targeted towards these various segments. 3.1.3 Positioning In third phase of product positioning all marketing mix elements are designed to fit a given place within a particular segment. This is how consumer perceives products relative position to competitors product which is highly important. It is like developing a marketing strategy aimed at creating and maintaining a desired concept and image for a product or service in consumers mind (See Appendix V for further information). Key to success is identification of attributes that are considered to be more important. Through market research we can identify what factors (attributes) are key drivers of a consumers preference for a brand. For instance, it was identified from a sample of female teenagers that were surveyed, that being trendy and stylish, having a good range of clothing, and good brand reputation, were most important factors for this target market when selecting a preferred brand Young Dimension of fashion retailer Primark. Brand positioning provides insight into brand performance and gives important inputs for marketing communications used to support a brand. Through communications, especially advertising, information can be conveyed about each attribute and in doing so adjust perceptions customers have of brand. As Primark need to reposition the perception market has of its brands from range and quality of clothing to be more trendy and stylish. Primark has emphasized more on in-store service and convenience; and as Budget Fashion retailer, they might want to maintain their current positioning of low price, affordable, but also good value for money. 3.2 Product Marketing Approach A companys performance is closely linked to its marketing strategies. Each companys strategy must be unique since each company is different with respect to customer, brands and competitors. I used Ansoff Matrix to determine product marketing strategies for Primark to set the directions for its business. With this matrix; I plot current and potential products along one axis and current and potential new markets along other axis. Thus it demonstrates low and high risk options and helps to think about business growth with new or existing products in new or existing markets. Each cell of matrix suggests a particular strategic approach. Output from Ansoff matrix is a series of suggested growth strategies. Market penetration is a growth strategy where business runs as usual and focuses on selling existing products into existing markets with good information on competitors and on customer needs. Primark can maintain or increase market share of its current products by a combination of competitive pricing strategies, advertising, sales promotion. Primark has extensive portfolio and it cans secure dominance of growth markets and drive out competitors by more aggressive promotional campaign. For example Primark brand Active, supported by a pricing strategy designed to make market unattractive for competitors. Primark must uses internal promotion strategy by introducing loyalty schemes and increases its usage by existing customer. One of penetration strategy adopted by Primark is expansion of shop floors and opening new stores. Market development is a growth strategy where business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including moving to new geographical markets; for example exporting product to a new country, new product dimensions, new distribution channels, or different pricing policies to attract different customers or create new market segments. I suggest Primark to move online by launching high tech website for online sales. Product development is growth strategy where business aims to introduce new products into existing markets. It requires development of new competencies and to develop modified products which can appeal to existing markets. Diversification is a growth strategy where a business launches new products in new markets. This is an inherently more risk strategy because business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, it must have a clear idea about what it expects to gain from strategy and an honest assessment of potential risks. Analysing Primarks position and its strategies over past decade, we can better construct a growth strategy for Primark using Ansoff matrix model below in Figure; 4.2.1 Product Portfolio Analysis Marketing mix refers to set of marketing ingredients and tools a company can use to pursue its marketing objectives in target market. According to Lancaster and Massingham; (1999), it is at marketers decision to choose from an extensive set of marketing components to find right combination while marketing a product. 4Ps form basis of marketing mix. Kotler (1996) describes, â€Å"Marketing Mix is a social and managerial process by which individuals and groups achieve what they need and want through creating and exchanging products and value with others†. Marketing Mix is viewed as combination of elements that contribute to success of an organisation. If market research is carried out effectively, a company can plan a promotion for right product, at right price, and to get it to their chosen market, in right place.Getting this mix right is critical in order to successfully market a product. 4Ps are Product, Price, Promotion, Place as shown in figure below; Primark needs to combine various elements of marketing mix in order to achieve both a competitive advantage in market place and company objectives. Although company has control over these elements of marketing mix, but must cater elements in companys environment over which it has little or no control (figure above). For organisations like Primark although marketing mix must be is consumer-orientated catering not only profitability but also considering customer needs as in figure, Table below shows some of marketing mix decisions for Primark including aspects from each of marketing mix elements. 4.3 Brand Strategy A successful marketing mix contributes to good marketing of a product; hence there must be a brand strategy in place. American Marketing Association (AMA) defines a brand as a name, term, sign, symbol or design, or a combination of them intended to identify goods and services of one seller or group of sellers and to differentiate them from those of other sellers†. (See Appendix VI for characteristics of a brand). A strong brand strategy can increase awareness of a company and its offerings in such a way that establishes strong feelings and reactions and a favorable view towards company as a whole. To begin development of brands strategy for Primark, there must be clear identification of Primary Target Customer and/or Client, Competition Product and Service Mix, Unique Selling Proposition First step in developing brand strategy is defining brands. By defining brand, its easy to create foundation for all other components to build on. Brand definition serves as measuring stick in evaluating marketing strategies. Primark has an extensive brand portfolio; Brand portfolio usually refers to companys set of brands and/or products. The logic behind having a portfolio of brands rather than a single brand is possible diversification and risk minimization. Hence brand portfolio is a treasure trove. Next step is to determine our brands objectives, Primarks branding objectives include: Delivers message clearly Confirms your credibility Connects your target prospects emotionally Motivates buyer Concretes User Loyalty Gaining a specific number of new clients in next year Positioning company as an industry leader in next 12 months To succeed in branding company must understand needs and wants of your customers and prospects. Brand objectives should be comprised of company personality, image, core competencies and characteristics. The impressions that it makes as well as words people will use to describe company to others, are basic framework of a brand.   With a strong brand company builds credibility, has more influence on its market, and motivates customers and clients to purchase from it. If done correctly company will be looked at as a leader not a follower. Identifying marketing targets enables company to find opportunities available. It gives information needed to focus on buyers that are interested in what company has to offer. This can save both time and money in an ever-changing business environment. Power of brand relies on ability to focus target audiences. That is why defining target market will help to strengthen Primarks brands effectiveness. Target market for Primark is people up to age of 35 who are fashion conscious. Next step in developing Primarks brand strategy is to perform a careful analysis to determine principal barriers that it may face. These barriers are also known as market conditions that can keep your product or service from achieving success. The potential barriers in deploying Primarks brand strategy can competition, timing, financing, location, lack of demand, suppliers not meeting demands and targets. In order to face these obstacles its important to spend time doing a careful analysis of products or service to assist in developing brand, and positioning products in the market. Last step in brand strategy is branding companys identity in marketplace where image is all about appearance of packaging. Its important to realize that packaging always either has a negative or positive influence on purchaser. A negative impression can detour a potential customer, just as a positive reaction can influence a customer to buy. A time to pay special attention to packaging is when going to launch a new brand. If youve already built a strong brand that others recognize often people may not pay as close attention to packaging. Packaging is judged and represented by business cards and stationery, web site, answering system, presentation of finished products. Brand equity does not develop instantaneously. A brand needs to be carefully nurtured and marketed so consumers feel real value and trust towards that brand. When a company manages its brands it has a number of strategies it can use to further increase its brand value. (See Appendix VI for further explanation). Brand strategies that are more suitable for Primark are line extension and introduction of new brands. Primark must focus on its brand management as its a dynamic and a continuous process that needs consistent investment of time and it must be allocated a specific budget as it is much more than mere marketing communications. Due to intangible nature of branding, results may not accrue in a short period of time a it takes time and reinforcement to build customer loyalty. Successfully out-branding its competitors is a continuous battle for hearts and minds of your customers. Proposition that Primarks brand strategy makes is very compelling, attractive and unique among competitiv e offerings. It must also be consistently reinforced throughout all phases of an organization, from senior executives to customer service, business development and even business partners. Primark is respected for quality of its products and cheap prices. If we briefly review business environment and other factors identified in this report for Primark then we may realize that consumer behaviour is changing and business environment evolving across retail industry. Concern is rise in suppliers demands regarding price and costs. If it continues to rise steeply it will damage profits that it is currently enjoying. Reviewing forces and factors faced by Primark and their impact on organisation, it is obvious that Primark is facing many challenges and standing at verge of it survival in long term. Market Research World, 2011 revealed that value fashion sector sees worst decline for first time in over 16 years much to gain of higher-priced retailers, reveals data by TNS Worldpanel Fashion. While fashion discounters such as Primark, Tesco, George and Matalan saw a phenomenal sales increase of nearly 30% last summer, growth has now ground to a hold with sales falling by 1% over last six months. In contrast, sales of most expensive clothing are up by 4%, as shoppers head to generally more expensive retailers such as multiples and mail order retailers. Clothing industry has been globalised. Strategies followed by clothing firms, to survive in a context of strong pressure from retailers and from competition from low-wage countries, are a combination of two trends. First trend is relocation of production to low-wage countries; second one is the development of six added-value activities: niche, Quick Response, full package, innovation, branding and retail. Elaine Giles, Research Manager, TNS says, â€Å"Shoppers are starting to favour higher priced retailers and premium end of market is performing well. Growth of value sector last year came on back of new store openings and expansions that brought an influx of new buyers, but now sector seems to have reached saturation point. The only way, budget retailers can continue their success is to increase spend of existing buyers, something they may struggle to do given current retail climate.† 4.0 Strategic Marketing Environment Analysis Primark is one of the leading value clothing retailers in UK. It is highly crucial for an organization like Primark to periodically review its marketing environment to gain competitive advantage in market. Discount cloth retailing in UK has several characteristics including clearance outlets, core business discounters, planned purchasing at high volume, own-label or branding, relationships with manufacturers, attracting customers with good image and service. There are three different analytical tools used to assess marketing environment of an organisation; Porters Five Forces Analysis, SWOT Analysis and PESTLE Analysis. 4.1 Porters Five Forces Analysis First of all Porters Analysis is carried out which is a technique for identifying forces which affect competition level in industry as shown in figure A below; The threat of new entrants in market is a critical element haunting Primark much as there are less entry barriers including low entry costs, high volume of suppliers, vast market in India and china, higher growth space in market, economies of scale, low capital requirements, access to distribution, government policy, low cost product design, access to necessary inputs. But new entrants in industry are not likely to cut their price to defend their market position. In an industry experiencing fast market growth, patents, proprietary knowledge, and brand reputation are also considered as barriers for companies entering industry. Strategic position of a company depends upon the extent to which what it offers is unique and cannot be replaced by something else. Primark has strong brand portfolio which is its uniqueness. As for some of products, like Primark cheap clothing there are alternatives. But there is no substitute for low price of Primarks products. Determinants of these substitution threats include relative price of substitutes, buyer propensity to substitute. Buyers/customers have greatest impact on Primarks strategies as its vision and strategies are customer focused. Hence, it has to cater changing customer trends, their demands and requirements. Customers volume, customer information level and trends, substitute products pull through, price, product difference, brand identity, impact on quality, buyers profit and incentives are few factors that Primark is facing as major challenge in competitive market. Suppliers might have high impact on Primark if they are bigger company and have less competitive market for their products. Primark is facing big challenge from supplier as it has good and long term relationships with its suppliers build on trust but recently three of its main suppliers are found involved in child labour and Primark has to cut-off ties with them immediately which is definitely a big blow for Primark. Primark pays its supplier competitive price for their products to retain them. Primark maintains substitute inputs, and high volume of supplier to avoid extra costs. Apart from five forces identified by Porters Analysis, there are other factors revealed by PESTLE Analysis challenging Primarks position in competitive market, in figure below; (For PESTLE Analysis, refer to Appendix II; and for SWOT Analysis, Appendix III) Strategic marketing analysis of Primark, using different analysis tools reveal that Primark is expanding globally and being in the global market; Primark has adopted an approach of â€Å"Think globally, Act locally† as stated by Armstrong, (2006). They are expanding globally but cater needs of local market and fashion trends in local culture. Primark supports UKs global role by showcasing the best of British fashion to a global customers as well as it reflects how it builds social cohesion and business ethics between customers and its suppliers. Primark faced a major blow to its reputation on 24 June, 2008 after being exposed by and undercover report by BBC exposing it using child labour. Afterwards, Primarks marketing strategy mainly focused to promote itself as ethical organisation with a clear and strict code of conduct to which all suppliers must adhere and which forms part of the terms of their contract. Primark supports nearly two million people through its supply contracts worth  £700 million and is dedicated to improve their standard of living and quality of life. For this, Primark has established ‘Primark Better Lives Foundation (Primark Ethical Trading, 2011 a). In response to the allegations of use of child labour by its suppliers, identified by Panorama (BBC program) Primark stopped buying from three factories in southern India for breaking its Code of Conduct. It also took other major initiatives and is now active member of ETI that announce it ‘Achiever in year 2009-2010 independent audit (Primark Ethical Trading, 2011 b). (For further information on ETI and Primark code of conduct, see Appendix IV) Further apart the positions, greater the opportunity for new brands to enter market, simply because competition is less intense. For example, in fashion retailing there are numerous brands in marketplace all competing with each other across differing core attributes, brand reputation, store presence, price, and clothing quality or trendy and stylish. To show how differing brands might be positioned relative to each other using attribute scores for each brand of fashion retailer we can measure and map brand positioning for respective brands. Figure below shows positioning of a number of fashion retailers using dimensions of price, store presence, and trendy and stylish. Using this list of drivers we can further depict on what we call a perceptual map how different competing brands of fashion retailers in market are positioned according to these drivers.   Understanding complexity associated with different attributes and brands can be made easier by developing a visual representation of each market. These are known as perceptual maps and they are used to determine how various brands are perceived according to key attributes that customers value. Perceptual mappingrepresent a geometric comparison of how competing products are perceived (Sinclair and Stalling, 1990). One thing to note is that closer products/brands are clustered together on a perceptual map, greater the competition. Mapping can provide significant insight into how a market operates. It provides marketers with an insight into how Primarks brands are perceived and it also provides a view about how their competitors brands are perceived. In addition to this substitute products can be uncovered, based on their closeness to each other (Day et al., 1979). All of this data reveals strengths weaknesses that in turn can assist strategic decisions about how to differentiate on attributes that matter to customers and how to compete more effectively in target market. 4.2 Competitor Analysis Like any other business, Primark is also facing tough competition from George at ASDA, Tesco, Marks Spencer, TK Max, Costco, Next, Zara, New Look, Peacock and Matalan. Analysis for each major competitor determines that Primark has better business strength and high market share. It has good financial strengths and high profitability but relatively poor quality of management and low standards of technology position. Primark is paying least attention to its marketing strategies. Marketing represents boundary between marketplace and company, and knowledge of current and emerging happenings in marketplace is extremely important in strategic planning exercise. In relation to competition, several external forces and environmental changes are faced by Primark that need to be considered to formulate its marketing strategy. Currently, Primark is facing high competition with quality competitors like Peacock, Matalan etc. They are offering cheap products as well and growing at tremendous speed, threatening position of Primark. Most of Primark customers are switching to rivals because of their quality products and good marketing strategies which Primark lacks. Marks and Spencer, the biggest rival of Primark has very extensive marketing strategies with strong brand portfolio. They do advertisement on almost every media available; while Primark do not use even single media for advertisement. Marks and Spenc