Leadership Assignment: How Dorothy Perkins Increase Its Market Share In UK?
Question
Task:
Select a company and prepare a report on leadership assignment justifying (ONE) strategy to successfully help it increase its market share in the UK.
Answer
Introduction
The research on leadership assignment signifies that in the modern era of the tight-packed business space, a well-crafted business strategy creates a direction and a vision for the whole firm. As the business space continues to move further it is crucial for the individuals within an organisation to know and have clear goals of following a mission and a direction. A business strategy based on leadership exceptionally works towards the vision along with providing the workers the main direction from losing sight from the company’s major aims (Ukko, et al., 2019). The following report aims to shed a critical light upon the same in the background of giant British women’s fashion brand Dorothy Perkins.
Section 1: Strategic Audit Overview
Internal audit:
Dorothy Perkins is one of the leading fashion brands of the United Kingdom that deals with a range of women’s fashion brand. The brand being controlled by one of the country based farmer family had earned itself distinct reputation of operating in the field via its quality products which it offers to its target audiences. On the grounds of internal analysis, the SWOT matrix conducted on the firm indicates that the brand has gained and maintained its own heritage. Where after being acquired by the Boohoo Group Plc the resource capability of the firm has also increased by leaps and bounds (Rono, and Bomet, 2019). Eventually, the strengths and weaknesses of the company walk neck to neck as it can be clearly witnessed that the strengths held by the company do not overpower the weaknesses.
Few of the strengths and weaknesses of Dorothy Perkins are as follows:
Strengths:
- Popular for celebrity endorsements
- The website showcases fresh clothing daily
Weaknesses:
- Bad customer rating on Trustpilot
- Bad management and treatment of workers
The complex hierarchical structure of the firm in the contemporary business environment is but only working against it as it has let the firm receive negative e-commerce and customer ratings on Trustpilot and web-based applications. Therefore, it can be stated that even though the firm has garnished itself its own reputation via its years of performance, practically the firm is lagging behind. As on the aspects of modern organisation, the work process structure of the firm is not only working against it but changes in the tax and trade regulations owing to the Brexit have also hampered its work process.
External audit:
The fashion clothing sector of the United Kingdom has totally taken an upside downturn owing to the outbreak of the global pandemic in the year 2020. The country being no alien to the situation witnessed and went through severe waves of the virus that was a sure shocker moment for all the industry and especially the ones not operating the sector of necessities (Desfiandi, 2020). Though by becoming a part of Boohoo group plc the company advanced its resources and capabilities, yet the Covid-19 scenario had put the company in distinct position. For instance, the pandemic outbreak increased every organisation's opportunity to increase its sales online. However, in the case of Dorothy Perkins, it can be stated that even though the firm had an exceptional reputation in the field of women's fashion yet its online image was not really commendable. As the firm had received negative comments it can be stated that such an opportunity granted from the external environment might but only work against the favour of the firm.
Few of the Opportunities and Threats of the firm are:
Opportunities:
- The correct and proper utilisation of Boohoo’s tactical capabilities.
- Pandemic restrictions get individuals to purchase clothes digitally.
Threats:
- Total new environmental based laws or even targets.
- An upgraded price of manufacturing would minimize profits.
Section 2: Strategic Options
SWOT ANALYSIS:
The SWOT analysis section of the firm indicates the various strengths and opportunities working in the favour of Dorothy Perkins in order to let decide on its queer strategy for winning the market scenario in the long run.
From the depicted SWOT analysis section (refer to the SWOT analysis of the requirement file), it can be clearly witnessed that the internal and external situation of Dorothy Perkins were highly dynamic. Where even to utilise the opportunities, the firm had to alter some of its working methodologies for keeping itself in a win-win situation in the times to come. Thus, it can be outlined that to make and frame a full-fledged strategy for excelling in the long run, the firm has to take cues from its SWOT analysis for conducting itself a beneficial plan to capture larger parts of the market share.
TOWS MATRIX:
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External Factors |
Internal Factors |
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Strengths (S) |
Weaknesses (W) |
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Opportunities (O) |
(S/O) - Increased resources and capabilities thanks to becoming part of Boohoo Group PLC/ As part of the Boohoo platform, Boohoo audiences will be attracted to the website of Dorothy Perkins -The website features new clothing daily/ Pandemic restrictions get people to buy clothes online -Elaborated protocols ensure even better ethical, sustainable and environmentally friendly operations/ Industry’s sustainable growth - the fashion e-commerce department is expected to level up to $1 trillion by 2025. |
(W/O) -Poor e-commerce rankings/ taking calls for online shopping – more people are shopping for clothes online -The organisation’s paradigm is still co-linked with the selling through outlets concept/ Pandemic restrictions and calls get individuals to buy clothes online. - A complex and a typical hierarchical structure that reduces change implementations/ Much reduced rate of interest or likeable exchange rate changes |
|
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Threats (T) |
(S/T) -Involvement in community projects, supporting charities/ New environmental laws or targets - The website features new clothing daily / Ever growing expectations of the target audiences of a saturated online shopping experience - Elaborated protocols ensure even better ethical, sustainable and environmentally friendly operations / High threat of New Entry – the retail sector is uncomplicated to enter specifically as more engrossed digital retails show up and only need a small amount of initiation cost. - Increased resources and capabilities thanks to becoming part of Boohoo Group PLC/ Alterations in the trade regulations owing to Brexit would uplift costs |
(W/T) -Poor e-commerce rankings/ High threat of New Entry – the retail sector is quite simple to enter particularly as more concentrated online retails emerge and only require a merge start-up cost - A fully compound and convoluted hierarchical structure which reduces change implementations/ A levelled up cost of manufacturing would reduce profits - The company’s paradigm is still co-linked with the selling through outlets concept / More expectations of the audiences from sophisticated online shopping experience – an online presence is not DP's strength |
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Table 1: TOWS Analysis
Therefore, from the aforementioned TOWS analysis, it can be viewed that there are still various opportunities which Dorothy Perkins as a firm has to utilise. However, on the basis of priority, the major opportunity the firm needs to make the most out of is its initiatives taken towards online shopping. As seen from the strength section, the website of the firm features new options for its customers yet the online rating of the firm was not favourable. Therefore, on the basis of priority, it can be stated that the firm requires uplifting its online reputation for becoming a leader in its field of operations. Nevertheless, for gaining a position of market leader the firm also requires to mend its hierarchical structure on an immediate basis for keeping its employees on a win-win situation. As a matter of known fact, in the long run, the success of any organisation largely depends on its employees (Rashid, 2017). Therefore, it can be outlined that via mending its hierarchical structure the firm can contribute effectively towards conquering its threats related to new market entry.
Nevertheless, to work more effectively upon its strengths the firm should work towards enhancing its capabilities for making the most out of the opportunity of fashion industry’s sustainable growth by 2025. Thus, it considering the financial status of Dorothy Perkins it can be outlined that firm holds the capability of investing more on sustainable measures for becoming a market leader in the position somewhere in the distant future grounds.
Section 3: Strategic Selection
SAF Framework
Green: Good factors
Red: Bad factors
Black: Information
|
No and Types of Strategy |
Suitability |
Acceptability |
Feasibility |
Porter or Ansoff? |
|
S1. Increased measures and priorities taken for enhancing online sales |
This particular strategy is one of the lowest risk strategies as in the modern time every organisation is moving towards online sales. Therefore, it can be stated that on the grounds of suitability the strategy is suitable for being processed further. |
The stakeholders of Dorothy Perkins would eventually accept the strategy as online sales but only keeps the firm in a win-win position. |
The strategy is feasible in the sense as Dorothy Perkins already was having a tough internal organisational time with its employees. Therefore, a shift towards online platform would but only keep the firm in a fruitful position. Moreover, the company also holds the financial capability of investing in online platforms. |
Resource-based (Porter’s) |
|
S2. Amendment in the structure of the organisation |
The amendment in the organisational structure is a change management process which the company needs to undertake for operating in the contemporary environment. The change would ultimately take Dorothy Perkins towards success by bringing out the highest potential of candidates. However, few of the employees of the organisation may retaliate change owing to the complications it brings in the initial phase. Such employees may usually be the senior ones. |
The stakeholders of the company would eventually agree with the strategy as it may but only bring them profit. However, few of the queerly interested stakeholders of the firm may also end up asking for end-to-end information on the same. |
The strategy is feasible as in the modern environment each organisation operates on the basis of such operation that but only brings in benefits to the firm in the long run |
Resource-based (Porter’s) |
|
S3. Investing more on sustainable fashion for gaining the tag of the market leader |
This particular strategy is suitable on the grounds of future. In the near future, as the industry is expected to grow, the firm should take the strategy more seriously for excelling in the long run. |
The stakeholders of the company but have mixed views on the same. While some of the stakeholders might agree for future betterment. Some may actually think that it is too early to invest for such future aspects. |
The strategy is feasible as Dorothy Perkins actually holds the capability of investing for distant future year of 2025 for gaining the position of a market leader |
Market-based (Ansoff) |
Table 2: SAF Framework
Small Summary
Green: Good Factors
Red: Bad Factors
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S |
A |
F |
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Strategy 1 |
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Strategy 2 |
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Strategy |
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Table 3: Small Factors
As witnessed from the aforementioned framework analysis it can be seen that eventually strategy 1 has all good factors and hence in the long run the strategy would work accordingly. The strategy would even keep the firm in a win-win position.
Section 4: Strategic Implications
Selected strategy: S1 Increased measures and priorities taken for enhancing online sales
McKinsey’s 7s model
Hard strategy: Yellow
Soft strategy: blue
|
|
Current situation |
The proposed strategy |
|
Strategy |
As per the current situation of the firm, Dorothy Perkins was eventually lagging behind in making the most out of the online platforms as it had negative reviews and under ratings (Kay, and Storey, 2018). |
The proposed strategy would focus more upon uplifting the name, fame and reputation of the firm online. The strategy would even focus upon mitigating the under rating it had received since the time being. |
|
Structure |
The organisational structure of the firm was hierarchical where some of its employees even found themselves on a tight-packed scenario (Lo, and Ha-Brookshire, 2018). |
To mitigate the same issue the proposed strategy would focus upon increasing the online sales of the firm. Owing to which the firm would be able to make the most out of digital platforms rather than indulging in regular organisational chaos. |
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Systems |
The current system of the firm was outdated where it did not utilise its full potential. |
The strategy would focus more upon upgrading the technical system of the organisation via investing more on digital sales. |
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Shared Values |
The shared values between the organisation and its employees had a huge gap (Henninger, et al., 2017). |
The proposed strategy would further focus upon bringing each of the employees together for increasing the online sales. |
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Skills |
As there was internal chaos in the organisation, the skills set of employees was but only hampered |
The strategy would find a way of upgrading the skills of employees as the company steps forward to move online. |
|
Style |
The leadership style of the organisation was hierarchical and hence it was creating issues in the operation of the firm (Moreno-Gavara, and Jiménez-Zarco, 2019). |
The strategy focuses on visionary leadership for excelling in the digital step. |
|
Staff |
The staff of the firm was not in free space and were packed in the tight clutches of hierarchical leadership (Bass-Krueger, and Kurkdjian, 2019). |
The strategy would focus upon uplifting the skills of the company's staff for working effectively in the digital implementation. |
Table 4: 7s Framework
Small Summary
|
|
Changes |
No Changes |
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Strategy |
|
X |
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Structure |
|
X |
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Systems |
X |
|
|
Shared Values |
X |
|
|
Skills |
X |
|
|
Style |
X |
|
|
Staff |
X |
|
Table 5: Summary of Changes
Stakeholders
The stakeholders of Dorothy Perkins are customers, communities, employees, suppliers, creditors and investors (Ryding, et al., 2018). Accordingly, the interest matrix of the stakeholders is presented below.
In the matrix: a. customers, b. communities, c. employees, d. suppliers, e. creditors and f. investors.
Figure 1: Stakeholder Matrix
Section 5: Implementation needs
Objectives:
The objectives of the strategy are chosen proposed strategy are:
- The increment in the conversion of sales
- Increment in the customer engagement levels
- Working on the typical structure of the organisation
- Increasing the awareness levels of the brand for mitigating negative reviews attached to the brand.
- Bringing an increment in the profit levels of the organisation.
Plan:
|
Task |
Deadline |
Resources |
Responsibility |
|
2 Weeks |
Human resources |
Monitoring the different online platforms via which the company works on its sales. |
|
1 month |
Human resources |
Managing the platform of online sales. |
|
1 month |
Human resources |
Planning the campaign and putting it on different social media platforms for their betterment |
|
2 months |
Human resources |
Noticing the feedback received from every activity’s end and thereby working on the same for the betterment. |
Table 6: Plan of Strategy
Conclusion
In the end, it can be concluded that in order to determine the future leadership direction of a business organisation strategies serve as exceptionally critical pathways. The strengths, weaknesses, opportunities and threats are the few particular learning which businesses utilise to evolve as witnessed in the aforementioned case of Dorothy Perkins.
Reference List
Bass-Krueger, M. and Kurkdjian, S., 2019. French fashion, women, and the first World War. Yale University Press.
Desfiandi, A., 2020. Factors of Preference for International Fast Fashion Brands: A Study on Generation Z. TALENT DEVELOPMEN & EXCELLENCE, 12(1).
Henninger, C.E., Alevizou, P.J., Goworek, H. and Ryding, D. eds., 2017. Sustainability in fashion: A cradle to upcycle approach. Springer.
Kay, F. and Storey, N.R., 2018. 1940s Fashion. Amberley Publishing Limited.
Lo, C.K. and Ha-Brookshire, J. eds., 2018. Sustainability in Luxury Fashion Business. Springer.
Moreno-Gavara, C. and Jiménez-Zarco, A.I. eds., 2019. Sustainable Fashion: Empowering African Women Entrepreneurs in the Fashion Industry. Springer.
Rashid, A., 2017. The impact of country of origin on retail and wholesale brands in the UK fashion industry. The University of Manchester (United Kingdom).
Rono, K.J. and Bomet, E., 2019. INFLUENCE OF EMPLOYEES’PERCEPTION OF LEADERSHIP STRATEGY ON STRATEGIC PLAN IMPLEMENTATION IN PUBLIC TECHNICAL TRAINING INSTITUTIONS IN KENYA. International Journal of Education and Research, 7(10), pp.191-206.
Ryding, D., Henninger, C.E. and Cano, M.B. eds., 2018. Vintage Luxury Fashion: Exploring the Rise of the Secondhand Clothing Trade. Springer.
Ukko, J., Nasiri, M., Saunila, M. and Rantala, T., 2019. Sustainability strategy as a moderator in the relationship between digital business strategy and financial performance. Journal of Cleaner Production, 236, p.117626.
