Growth Strategy Assessment of Dorothy Perkins

Introduction

This report will produce a strategic audit that will examine external and internal variables to understand better the strategic role and growth plan of Dorothy Perkins, a British multinational women's fashion brand. This research is being carried out to analyse and validate the company's current growth strategy. The following is the format for the report: It will start with an internal audit to assess the company's Strategic Direction, Corporate Culture, and Business Processes. Following that, an external audit will be conducted to determine consumer demand. Via theories and theoretical structure can examine user expectations, competitive analysis, and other external pressures. This final segment will include a SWOT analysis focused on internal and external audits.

1. INTERNAL AUDIT

The initial part of a strategy would be the conduction of an internal audit. This internal audit will explain Dorothy Perkins's strategic direction, culture, resource, and abilities ( Agbodo, A.2021). Internal auditing will assess the company's internal controls, looking for strengths and weaknesses.

1.1 STRATEGIC DIRECTION

According to research, the mission statement helps identify an organization's strategic path, and the vision statement and goal can describe the company's future position. The business mission statement defines the company, business goals and form of strategy, and the vision statement describes the company's future situation. The strategic direction of Dorothy Perkins will allow its stakeholders to have a clear and motivating purpose for the organisation that goes beyond the simple maximisation of profits (Johnson, G. 2017). The strategic direction of Dorothy Perkins will allow its stakeholders to have a clear and motivating purpose for the organisation that goes beyond the simple maximisation of profits (Johnson, G. 2017). (https://www.dorothyperkins.com/en/dpuk/category/about-us-7093466/home ). As a result, it's critical to examine and comprehend this company's mission and vision statements, which serve as strong indicators of its strategic direction. Dorothy Perkins' Mission Statement The mission statement is what "aims to provide employees and stakeholders with clarity about what the organisation is fundamentally there to do" (Johnson, G. 2017). Based on this definition, Dorothy Perkins has developed the following mission statement: "To produce fashionable products ethically and demonstrate a responsible attitude towards people and the environment. When customers buy our goods, we want them to be confident (https://www.dorothyperkins.com/en/dpuk/category/responsibilities-3077381/home )

1.2. Mission statement of Dorothy Perkins

Is the mission declaration and the element of Dorothy Perkins analysis. Based on this analysis, Dorothy Perkins has a clear and robust vision statement. Nevertheless, there have been some suggestions for improving the mission statement. We advise you to have a stronger mission statement with further guidance, such as concentrating more on employees and clients.

1.3. The vision statement of Dorothy Perkins

An organisation vision statement is concerned with the future the organisation seeks to create (Johnson. G. 2017). In this case, Dorothy Perkins mission statement is fully linked with the boohoo group plc, as Boohoo has recently bought this brand (BBC,2021). Here, the Dorothy Perkins mission statement was strongly related to the boohoo plc group, as Boohoo bought this brand recently (BBC,2021). Therefore, for all its companies, the Boohoo Group plc has laid the same views "Our vision is to lead the e-commerce fashion market globally in a route which provides services for the customers." Boohoo Book (boohoo group plc,2021) The main goal for the boohoo group plc and Dorothy Perkins in the long term is to reach an essential element of e-commerce, the fashion industry and its stakeholders. The main goal for the boohoo group plc and Dorothy Perkins in the long term is to reach an essential element of e-commerce, the fashion industry and its stakeholders. This vision does not leave doubts.

1.4. Corporate culture

Corporate Culture "Corporate Culture refers to the formal environment and norms that characterise a specific organisation, as well as it is informal behavioural and the social phenomena that occur among individuals in an organisation" (Mercadal, 2020). Dorothy Perkins must determine whether she has a strong and positive corporate culture as corporate culture affects an organisation's essential elements, such as its identity, retention, management, ethics or image (Forbes, 2017). The cultures of Dorothy Perkins will require the following frameworks are needed for culture: the Cultural Web and Framework and Miles & Snow Culture Typology.

1.5. Cultural Web

Cultural Web Johnson (2017) describes the cultural web shows the behavioural, physical and symbolic manifestations of a culture that inform and are informed by the taken-for-granted assumptions or paradigm of an organisation. The cultural web scheme is composed of 6 elements that combined create the paradigm.

1.6. Miles & Snow Typology of Cultures.

Miles and Snow Framework Miles and Snow (1978, cited in Journal of Business Research, 2014) studied different strategies that arise from how companies address three fundamental issues entrepreneurial engineering and administrative problems. They proposed a strategic type which classified fone types of organisation: defender, analyser, reactor or prospector.

Charles Handy (1993, cited in Organizational Change, 2016) proposed four organizational culture types, power, task, role ad personal usage of the Greeks gods from inspiration. Handy describes organisational culture as an environment, a way of doing things, and a degree of energy and individual independence.

1.7. Capabilities and Resources

Through a system called Greenley's Classification of Resources, this section will include details about Dorothy Perkins' resources and strengths, as well as describe areas where they may gain a competitive advantage.

1.8. Greenley’s Classification of Resources

2. External Audit

2.1 Market Structure

This section of the research will examine and analyse factors in Dorothy Perkins' external environment. Competition, marketing demands, customer/user preferences, and other external pressures will all be examined using various frameworks in this case. The apparel market in the United Kingdom is dominated by ten companies that control more than 40% of the overall market share. The remaining 60% of the market is distributed among the remaining 21,851 companies in this industry (IbisWorld, 2021). The business in which Dorothy Perkins works has a monopolistic competition market structure.

2.2 Porter’s Five Forces Framework

Threat new entrant MEDIUM

The threat of a new entrant in this market could be defined as a medium threat, in this case, research carried out by Made It British in 2018 shows that 50% of fashion brands start-ups in the UK spent less than £15,000 to launch their brands. This would explain the high number of businesses in this industry, 21,861 (IbisWorld, 2021).

Bargaining powers of customers

HIGH

Buyers have a lot of leverage because there are so many choices to choose from and because there are so many companies in the industry.

Bargaining power of suppliers

LOW

Many companies are adopting a new manufacturing method that consists of manufacturing their products in the countries where they are going to be operating to reduce lead times as much as possible (BBC News, 2019). It is a well-known fact that many companies operating in this industry supply their products from primarily Asian countries to lower their manufacturing costs (European Patrliament, 2020). This means that the suppliers can be easily substituted.

Competitive Rivalry STRONG

In an oversaturated market where there are so many participants, and start-up costs are relatively low, competition is fierce for both established fashion brands as well as smaller brands/niche brands (Mckinsey, 2020).

Substitute Products

HIGH

Sustainable fashion is undoubtedly one of the most popular trends in the industry right now, with 90 per cent of UK shoppers expressing an interest in having this alternative open, according to Internet Retailer (2021). As a result, it is clear that sustainable clothing has the potential to change the fashion industry.

2.3 Other External Pressure

This section will examine some of the PESTLE factors to determine what other external factors can affect Dorothy Perkins.

3. SWOT analysis and Conclusion.

Based on the review of the internal and external audits, the final portion of this assignment will consist of using the SWOT system to outline the strengths, shortcomings, opportunities, and risks.

Dorothy Perkins is a fashion model for women all over the world. This strategic audit has helped us better understand Dorothy Perkins's strategic strategy, culture, and resources. Combined with an external audit that exposed the business conditions under which Dorothy Perkins operates, customer expectations from organisations in this market other external pressures have resulted in the SWOT review presented above.