Clothing Store Case Study

29/1/2009 Executive Summary This pop off is an introduction to the style perseverance of Pakistan which has made sort of a lot of progress in just a fewer years. Ten to fifteen years from now, this diligence was still unkn receive to actu totallyy go to the masses. Later with the formation of room councils and education centers under the enthusiastic few who wanted to make a difference and promulgate this real institution of vogue, did the very personal manner industry took its concrete contour from the old tailor culture that formerly existed. Today it is one of the most progressing industries in the acres.The way industry too, is influenced by external forces be they social, political, frugal, technological or even competitive, which serve as a chief(prenominal) driver for this industry. Moreover, relations with stakeholders in the main suppliers, distrisolelyors and customers, and the strength and width of its competitors excessively define activities in the bus iness. However, the relative strength of impact of these external factors on the industry varies (as in all(prenominal) industry) and is computed with analytical tools like pest-C analysis and Porters five forces model.Nonetheless, mould industry assures new argonnas of growth and development new opportunities for employment. This industry promises a distinct subject projection that is serene and contemporary. Later, an extensive familiar analysis of the friendship of concern is carried reveal, which in this piece of mesh is m be B. maria. B. is one of the most strong renowned tarnishs of Pakistan. A caller- bug out formed to r exploitationise the tailor-culture of apparel making in our society. female horse B. s a brand that contributees to all sectors of both the traditional and urban female fashion demand by dint of a unique combination of pricing and the diversity in the fashion life-styles that she offers. She is the only reason to rescue all the needs of di fferent segments of the chars demographic cover under one roof. (Randhawa) She has been adopted by the modern Pakistani women along with the hip crowd as the latest cult scar in recent years. This soil previously never witnessed a true supranational pret-a-porter collection before mares infamous Paris arrangement in 2001. Her stuffes are a reflection of her own style. way Avenue Quarterly, 2003) The top student from the first batch of graduates from the Pakistan drill of Fashion aim, female horse was selected in 1997 to represent Pakistan at the transnational aspiration in Belgium, Europe called Les Etoiles de la mode, an annual puppylike designers award. She made a study international media impact, and was the first Pakistani fashion designer who created awareness of Pakistani Fashion on the mankind circuit, when she finished top 3 in the final rankings amongst 22 participating countries including global fashion giants like, France, Italy, Japan, and U. S. A.A media darling of the local anesthetic press, Maria B. opened her first outlet in 1998 in DHA Commercial Block, Lahore at a snip when her peers and seniors were still operating from their homes, or at rented houses. Today, Maria B is immensely successful and is the largest selling brand under a fashion designers judge in Pakistan. (Randhawa) Her bourns are so groovy and Maria considers them her strength. With her pecuniary strength and international presence, Maria B intends to bring a neuter in the local fashion industry. pic Introduction Fashion in itself is a very abstract endpoint yet it embraces our everyday lives.The term has many different definitions and interpretations. concord to The Ameri brook Heritage College Dictionary, fashion is the prevailing style or custom, as in dress or behavior something, such as a garment, that is in the authoritative mode the style characteristic of the social elite. (Forbes Inc. , 1997). Fashion is an extension of self, an expression of i ndividuality, of art and modernism. It has no boundary telephone wires or divides. Its passion and it is the constant evolution of society (Ghafoor, 2002). Fashion is a social phenomenon common to many fields of human activity and thinking. To some, fashion is an art form. To others, it is life.For most plurality it is a method of utilizing clothing, accessories and hair. Fashion is a mode to express yourself, to serve as an extension of your personality, or even to disguise your true self (Nellis, 1999). Fashion is a term commonly used to describe a style of clothing worn by most of people of a country. A fashion usually system popular for about 1-3 years and then is replaced by yet another fashion. Even though there are a lot of changes in fashion, most people do not slowly except the changes. A clothing style may be introduced as a fashion, but its use breaks a custom after being handed down from generation to generation.A fashion that comes and goes is called a Fad. (Fas hion Forever What is Fashion? ) A lot has changed and evolved in the annals of fashion since the 1900s. As the century dawned, fashion was an exclusive enterprise, the pursuit of wealth. The bonny person in society square offtled for garments that were usually stitched at home. With metre, however, networks of similarity tailors began to evolve into a retail history and the boom was fol unkepted by boutique selling. The 1930s were influenced by socialism, communism and fascism and womens fashion became more and more maidenlike in keeping with these conservative ideas.However, this period also saw the emergence of the culture of clubs and hence dresses became more body-hugging and colorise went more deep and dark. The establishment of Indian and Pakistani cinema has proved to be the strongest influence on the fashion in the decade. Due to western influence, the use of angarkhas, choghas and jamas had diminished considerably by this time, although the ceremonial occasion pugdi , safa and topi were widespread as ever. They had been replaced by the sherwani, which is still a standard item of formal dress for Indian and Pakistani men today.Even though women were accepting change, they continued to jade the peshwaz, kurta, ghaghra and odhni at religious and ceremonial festivities, which were even sometimes made of imported fabrics. The 1950s saw the dawn of art colleges and schools and collectible to the freedom struggle and the adoption of khadi by Gandhi, the dying and handloom industries got more business. The 1960s was one of the most shock-filled decades of the century, as it saw sweeping fashion and lifestyle changes. Tight kurtas and churidars competed with mini-skirts abroad and at the same time, designers began to understand the need for cheaper, ready-to-wear strains.The 1970s saw the export of traditional material with the result that export trim was sold within the country itself and hence, international fashion came to the sub-continent. Synt hetics became popular and the clothes even flashier. In the 1980s big money ruled. In Pakistan too, silhouettes became more masculine and the shalwar kameez was made with shoulder pads. The influence of cable TV became more prominent and the teenage market boomed with youngsters who were more fashion conscious. (Baig, 2004) Mid 1990s and the set about of the 21st century was marked fashion designers that changed the way fashion was contemplated.Designers greatly influence what direction fashion will go. These designers design and define forthcoming fashion developments. They are the trend setters of change in a culture through change in tastes and lifestyles of a community which is often characterized by changes in current trends and styles. And changes in fashion play one of the major roles in these transformations. The activities of these designers, collaboratively, form the fashion industry. The fashion industry of Pakistan is growing in volume with every pass(a) day. The cre dit goes chiefly to the mainstream fashion people, who adjudge been instrumental in this change. Nisar, 2004) The industry has witnessed quite a mature spurt in the last two decades evolved from a traditional darzi (tailor) culture into a mature and cutting- knock against business (Imam, 2008). However the status of fashion designers in our country greatly owes to the fashion institutions, particularly the Pakistan School of Fashion Design (PSFD) now called the Pakistan Institute of Fashion Design which was play its role in bringing out the emf and imparting training to young designers who today enjoy a reputed name in the retail market.Some of these recognized names acknowledge Maria B, Hasan Shehryar Yasin, Deepak Parwani and Maheen Khan (Qureshi, 2008). These are some of the few names which the fashion industry identifies with. Though the industry had been operating for quite a time, it actually got its institutional shape after the formation of the Pakistan Fashion Design Co uncil. This council was an attempt by twenty five of the countrys top and established designers to create an infra social system, a platform on which everyone could collabo invest and represent their ideas and designs at the national and international level a place where they could ?Give structure to the expanding vital industry. ? To liaise with the government bodies on matters pertaining to excise duty, taxation systems, preferential tariffs for freight etc. , and to work towards creating a fashion districts. ? To create an inter count between the fashion industry and textile and crafts industry which are one of the most strong industries , which could revitalize them and in turn, advance the designers greatly by incorporating ethnic methods of weaving, printing and ornamentation to produce up-market, contemporary creations of standardized bore and subsidized rates. To address the changing needs of the industry as it evolves and of creatively show- slickness the work of Pakis tani designers and find a commercial representation for them both, domestically and globally. (About Us, 2004) Some of the attempts that the council made was the initiation of a Pakistan Fashion Week requirement for business and trade linkages as hygienic as for publicity purposes studying the present distribution/reselling network to see how designers could benefit from it creating a trend forecast for domestic and export markets, and standardizing the pret-a-porter industry by having uniform sizing, accounting and labeling norms. About Us, 2004) However, the councils main attempt to collaborate the private roads of fashion designers failed partly callable to poor projection of there vision and partly due to the difference in the persuasions of designers in the East and South Lahore and Karachi, the main fashion hubs. This led to the creation of two distinct councils, the Pakistan Fashion Design Council (PDFC) in Lahore and Asian Institute of Fashion Design (AIFD) in Karachi. These two councils have carried out their separate activities despite unification efforts until lately.On celestial latitude 1, 2007, a mall showcasing the creations of Pakistani fashion designers was inaugurated by the name of Boulevard in Lahore. It was for the first time in the citys history that fashion designers from all over the country got to display their work under one roof (Rashed, 2007). Prominent designers displaying their work admitd Hassan Shehryar Yasin, Maria B, Nomi Ansari, Kamiar Rokni, Shafaq Habib, Karma, Shella Rehman of Unbeatables, Ammar Bilal, Asifa and Nabeel, Ahsan Nazeer, Sanya Qureshi, Sobia Nazir, Nickie Nina, Sana Shahid of Sublime and Naila Maqbool.It is hoped that such a platform will amalgamate the vital forces of our fashion industry making it the hub of Pakistani fashion houses as is envisaged (Farooq, 2007). An Industry summary By definition, industry analysis is business research that focuses on the potential of a firm. Basically, an industry analysis is conducted to addresses three all central(p) questions 1. Is the industry accessiblein other words, is it a realistic place for a new venture to enter? 2. Does the industry contain markets that are ripe for revolution or are underserved? . Are there positions that will avoid some of the negative attributes of the industry as a whole? (Barringer & Ireland, 2006) A complete industry analysis of a firm will involve its PEST-C analysis which will answer the first two questions, its Porters five forces analysis which will answer the latter question, followed by its External Forces military rating (EFE) matrix on the basis of the opportunities available and little terrors facial expressiond by the company of concern Maria B. PEST C EvaluationIn this industry evaluation, P stands for semipolitical, E economical, S Socio-cultural, T Technological and C belligerent forces that impact the activities and opportunities and threats affecting an industry. Political forces These include any change in government laws tax laws, labor laws, patent laws, government regulation and deregulation etc, political stability, safety and environmental protection regulations, international trade regulations etc. (David, 2005) Changes in tax and labor laws, can directly affect an industrys revenue and growth structures.A rise in the rates of these laws can increase business expenditures and may decrease revenues. Sometimes, with industries with low profit margins, such change can aim a barrier to profitability. Political instability in the country in terms of political parties or weakness in governmental policy can prove chaotic for the industry. on a lower floor such condition, this business, like any other business can be severely affected and eventually shut down. For e. g. , national political parties like MQM and MMA riposte up a very unfavorable attitude towards the fashion industry.In case of bureau, any of these parties can adversely affect or even le ad to a ban on this industry which could prove distressful. Similarly strict trade regulations and excise policies can affect international exports and hence, increase the overall trade deficit. environmental degradation posses a great threat to survival of any industry. Hence, being a socially and environmentally liable corporation is an natural for projecting a domineering public image. Economic ForcesEconomic forces that impact an industrys activities include interest rates, income levels and earning patterns, price wars, oil, currency and labor markets, inflation, unemployment, availability of credit, fiscal policies, spending and spending propensity living standards, international trade and cooperation policies etc. (David, 2005) Nowadays, there is a growing trend toward two-income households. Individuals place an increased premium on time immediate availability and improved customer service (David, 2005). Customers are willing to pay more if they can obtain it with ease. There is an increase in the average standard of living in the country with a decrease in poverty level of 10. 6% during the past four years (Economic Survey of Pakistan 2007-2008). This can serve as an opportunity for the fashion industry to enhance profit margins through add-ons provided that the income levels remain stable. Changes in interest rates often occur due to changes in the exchange and trade market. A deficit in trade can account for rise in interest rates. Similarly and rise in the international price of oil (as witnessed in recent years) can drastically impact the value of currency.This leads to changes in fiscal policy like an increase in the interest rate translated by inflation. High inflation can slow down business activities and at time generate no profit at all. The inflation rate the year 2007-08 was calculated to be 10. 3% as compared to the 7. 9% last year which shows an increased inflation that disvantaged business surgical operation country-wide (Economic S urvey of Pakistan 2007-2008). However, in an economically active country with lower trade barriers, resultant price wars can increase contest and even and industrys profit margins provided the industry is dominant as tumesce as has international presence.Similarly, increased unemployment can provide an industry opportunity to project a positive image and provide training and employment to the depressed, hence positively contributing to the economy. Socio-Cultural Forces Factors in the socio-cultural front that can influence an industrys operations include demographic trends, cultural changes, environmental patterns, population growth, business attitude, change in tastes and lifestyles, education, ethical concerns, buying habits, religion, family, values and attitudes etc. Pakistan, with a population growth rate of 1. % is the human beingss 6th most populous country with an estimated total population of 160. 9 million. (Economic Survey of Pakistan 2007-2008) Out of this 74% of the total population of Pakistan lies in age group 15 34. However, 70% of the population resides in urban areas. (Federal Bureau of Statitics, 2005). With this came in increase in the literacy rate of the country which increased to 55% in the last four years (Economic Survey of Pakistan 2007-2008). Business activities have also flourished quite in the recent years, partly owing to foreign competitors launching the market.This has led to an increased change in the lifestyles and mindsets of people. There is an increased trend towards nuclear and dual-career families which serves as great opportunity for the industry as the buying power of the consumer is enhanced. Moreover, with change in lifestyles comes change in tastes. Nowadays people prefer using customized products and this is an opportunity for the fashion industry to pursue its tar arrive merchandising strategy. Fashion industry is an industry for the youngsters. With such a large and lucrative tar liquidate market, this indus try can earn huge profits, provided it sufficiently focuses of their needs and interests.In view of this, fashion industry collaborated with the PBA (Pakistan Broadcasters Association) to launch a fashion channel worldwide last year by the name of ETNL ( sort Dunia & Youth) which is being launched soon in the country (Pakistan Broadcasters Association (PBA), 2007). Religion and ethical preferences too, play a major role in shaping strategies and marketing products, e specificly if one moves from culture to culture. Fashion industry in Pakistan, therefore has to take into consideration the limitations that ethics, culture and religions imply on clothing nationally as well as internationally.Technological Forces Though fashion industry is not technologically driven, but is has now become a necessity especially if an industry or company wants to maintain competitive edge or tap into international arena. The focus of todays industries is on mass customization as well as mass production which are not possible to achieve if it is inept in technology. Several factors impact an industrys technological consideration. These are, Government spending in research, changes in Information Technology, network and Mobile Technology, energy use and costs, and international transaction costs etc.Technology is one of the powerful sources of marketing in todays era. The world is now a global village. Increase in technology, especially the internet helps cover a large number of consumers thus, helping a business reach a large target market in a short time span. According to estimates of 2006, the global internet usage accounts for 21. 9% of the total world population with Pakistan alone, having a total usage of 7. 2%. (UNDESA, 2006) This is a very attractive opportunity for the fashion industry in case fashion designers break down e-selling.International marketing (e-commerce) is one of the major contributors to world economy. It not only helps in the development of the business but also helps in the development of the countrys economy. However, any business before tapping into international arena has to go through various study and research to adopt proper marketing mix, visible evidence and performance before launching itself worldwide. It also needs to be aware of all the rules and regulations (cyber) of its host country. Once capitalized upon, e-commerce can produce great profits. Competitive ForcesThis force is recently introduced in the PEST analysis. Keeping in view the growing competition world wide, analysis of ones competitive forces has become an essential to success. Gathering information about competitors strategies and progress has become very important. Due to diminishing trade barriers, WTO, EEC, OPEC and collaboration with other world communities, national border are no more existent. Now every country is a part of a bloc. This in turn has fiercely increased competition as a result of lower labor costs, enhanced technology and internet fac ilities.Now production is done in one country, assembly in other, encase and shipment in another due to advancements in transportation and e-commerce. Companies strive to achieve competitive edge as low-cost producers. In such a rapidly changing environment with international competitors invading every country, keeping pace with, in fact going ahead of ones competitors is the only key to progress. However, it is essential to have a track of strategies and policies of an industrys competitors but ethical concerns in gathering intelligence data should not be neglected.Competitors of Maria B. The company that study under fashion industry is Maria B the largest fashion house of Pakistan. The company when formed was the first to start business with a retail outlet while all her competitors were doing business from home. Today, after ten years in business, Maria B faces competition from direct as well as indirect sources. A list of her direct competitors include designers like Hasan She hryar Yasin, Rizwan Beyg, Generationz, Deepak Perwani, Nomi Shahid, Nikki and Nina, Sehyr Saigol, Maheen Khan, Sonya Batla, Hajra Hayat, Nayna, Monica Piracha.With them there are indirect competitors too that pose a threat to Maria B. They include local textile shops, local tailors, and famous brands like Gul Ahmed and Bareeze that are dealers in un-stitched garments. PORTERS Five (Competitive) Forces Evaluation Below a diagrammatic unofficial of the five important competitive forces is given pic Rivalry among competing firms Fashion industry in Pakistan is yet in its progressing stages. It has moved ahead from being embryonic but hasnt spurted.However, threat of competitors is still an important factor that govern the operations of this industry particularly the rivalry between fashion designers of Karachi and Lahore in terms of ideals have prompted every company in the industry to strive to develop a competitive edge and nationally expand as large as possible. This is mainly beca use the few designers that exist at present are equal in size and capability. The internet is still not used as a uncreated source of doing business but there is a growing tendency among designers, particularly the established ones to use internet for trade purposes nationally and internationally.Inflation and changes in customers perceptions and attitudes is also a driving force toward increased competitive rivalry. In the beginning, fashion designers pursued all their efforts towards bridal dresses. But as customers are decent more and more aware and demand of branded apparel is increasing, these designers are finding new areas of development by focusing more on occasional(a) outfits. However, this industry is still not mature enough in its life cycle that price cutting could be a common phenomenon.There is not much time before these few designers are faced with increased competition particularly as standards of living become full(prenominal) and international designers set up their business in the country. Competitive rivalry in this case is comparatively high. Threat of new entrants Threat of new entrants in Pakistani fashion industry is high. This is because the barrier to enter this market is quite low because no previous experience is required to start doing business in apparel, customers have low brand preference and loyalty, too is low.If a customer gets a better option else where and that too, for a lower price, s/he can switch to that option. regulatory policies in the country are not very strong and hence achieving patents for a product or service is relatively easy. Moreover, the government itself promotes the setting up of new businesses. In regards to technological requirement, fashion industry does not require any cutting-edge technology to keep at pace. Therefore, if one needs to get into fashion designing, it is quite easy. Potential development of substitute productsIn an apparel industry, there is no substitute for clothes, but there ma y be a substitute on the procedure of abuting them. Fashion industry, too faces threat of substitute methods of processing. People, especially in a growing economy can easily get ideas from designer outfits and get them stitched through a neighborhood tailor instead of buying it from that very designer due to its high price. On the other hand, local tailors can give you the same design, though maybe not the same quality at a comparatively low price. Hence, the threat of substitute is high.Bargaining power of suppliers Bargaining power of suppliers is quite low in Pakistani fashion industry. The major raw materials required in this case are textiles and embroidery materials. These two industries textiles and embroidery are one of the richest and profit producing industries of the country. Therefore a designer has the power and the choice to switch among suppliers and even talk over prices as there are a large number of suppliers available to provide the same or even better raw mat erials at on the table prices.Bargaining power of customers Bargaining power of customers is low in this industry. This is because there few choices to select from. Designers have there set prices that are quite high and fixed they cannot be negotiated upon. If talked about competing brands, a buyer cannot easily switch to other options. Products are homogenous and the prices may either be uniform or else a buyer has to trade-off with quality of the product. External Analysis SW(OT) OPPORTUNITIES THREATS Expand into Emerging Economies Competitors Enter youthful Product Markets New entrants Acquire More Companies Substitutes Ecommerce gross revenue Economic Situation Expand Standalone Stores Political item International Economies and trade restrictions Brand Cannibalization External Factor Evaluation (EFE) intercellular substance This matrix evaluates a companys external environment the opportunities and threats that are faced by an industrys companies in the ext ernal environment. Our company of concern is Maria B.A compact of all the factors that are faced by this company and its ability to capitalize on them or tackle threats is given External Factor Evaluation Matrix Opportunities Weight Rating leaden Score 1 Expand into Emerging Economies 0. 14 3 0. 42 2 Enter New Product Markets 0. 12 4 0. 48 3 Acquire More Companies 0. 04 4 0. 16 4 Ecommerce Sales 0. 06 4 0. 24 5 Expand Standalone Stores 0. 03 3 0. 9 Threats 1 Competitors 0. 12 3 0. 36 2 New entrants 0. 1 4 0. 4 3 Substitutes 0. 12 4 0. 48 4 Economic Situation 0. 07 2 0. 14 5 Political situation 0. 5 2 0. 10 6 International Economies and trade restrictions 0. 06 3 0. 18 7 Brand Cannibalization 0. 09 2 0. 18 1 3. 23 Fashion industry provides a promising future of growth and development in Pakistan. Once established, it has the potential to contribute positively to the national economy. Company IntroductionMaria Bs entrance into fashion world can be summed u p in adage she came, she saw, she conquered. (Ghafoor, Face to face with Maria B. , 2002) Maria B. was the first fashion house in Pakistan. She launched first outlet in Lahore in 1998. Since then, Maria B. has large leaps and bounds. With her vision always clear to make Maria B. Pakistans first international brand name in fashion, today, she is the first and only women wear brand retailed crossways countries. She is the only local designer with a franchise outlet in London. The Label is also internationally stocked in Manchester, Birmingham, New Delhi, Dhabi, Orlando, Washington, New York, New Jersey, Dallas and New Delhi.By the end of 2006, she had retail reach to 5 outlets nationwide over Lahore, Karachi, Islamabad, and Faisalabad. (Randhawa) In 2006, Maria B. also launched her first range of accessories of plaza and handbags. (Randhawa) Maria learned that there was tremendous scope for Pakistani fabrics in the international market and was determined to make her mark globally . As she said, Im a staunch patriot I want to take Pakistans name in the international fashion scene. I want to show people around the world what a great heritage we have. That really is the core philosophy of my business. We want to go into the international market and prove ourselves as a Pakistani brand name. (Maria B. Fashion Designer) For her, fashion is simply an extension of self, an expression of individuality, of art and modernism. It has no borders or divides. Its passion and it is a constant evolution of society. It is flitting and global. (Ghafoor, Face to face with Maria B. , 2002) She changed the previous begum darzun (societal tailoring) culture and brought new horizons in the fashion, rather the apparel industry as a whole with her pret-a-porter collection of exquisite and elegant dresses that defined femininity with style. She believes that, Fashion today is not dictated to woman. The modern confident woman chooses what she wears. Ghafoor, Face to face with Maria B. , 2002) As a designer, she always felt her responsibility to translate and enhance each persons natural style into fashion statements according to current trends. She believes in natural endowment and dedication if a person is not talented enough or cant make fashion his or her life, s/he should be in another field. She strongly suggests, Dont be in fashion because you want to be fashionable or make money be in it because you feel that you can contribute to it otherwise youll be just one of the thousands who have kaarigars (tailors) at home and think that they are designers (Ghafoor, Face to face with Maria B. 2002) Recognized by BBC, in 2002, over a three month running program for Asian woman as the preferred label for modern professional working woman of Pakistan, Maria B has been hailed as the pioneer in redefining womans fashion modernity in Pakistan. (Randhawa) No doubt Maria B has brought a revolution is the local apparel industry. Today, after ten years in business, it is the largest fashion house in the local industry. Her company has risen and surpassed the semblance of mediocrity. A trend setter as Maria B. has always been, she is even more passionate and daring to set trends for the future and believes that she can go further than others in bringing Pakistan on the world map of fashion. Randhawa) You have to aim high and I do want to get to New York, Milan and Paris one day. Maria B. (Maria B. Fashion Designer) Internal Analysis of Maria B. Zurain Imam, a renowned fashion critic said that Maria B. has become a veritable couture quality household brand. (Imam, The A to Z of Fashion, 2006) Maria B. has become a hot name with her exciting shoots and the rapid amplification of her outlets. Her success has single handedly shown that fashion can be successfully open in Pakistan as business. (Dawood, 2003) No doubt, Maria B. has put forward a tenuous example a of successful business venture by expanding worldwide in just a short span of time. All of this requires planning and organizing strategically. Maria B. believe that its the companys strategic vision of promoting Maria B. as a Pakistani brand recognized world over has played a very important role in its success. She believes that with good guidance, marketing, leadership, research, cost and operative measures, a company can really go ahead. management Management at Maria B. like any other successful company is all about good planning, organizing, motivating, leading and controlling. The company has a strong management philosophy that believes is integrity, talent and dedication if you cant make fashion your life, choose another field. (Ghafoor, 2002) Planning Maria B. irmly believes that good and forecasted planning is essential for achieving a desired goal. Planning is all about preparing for change by bridging the gap between the present and the future. It enables a company to gather the necessary resources and carry out tasks in the most efficient manner. (Da vid, 2005)At Maria B. planning is thoroughly done before the beginning of any new activity or the launch of a new product. The company also relies on competitive intelligence in order to make comparative finiss. With no fear on local competition from brands like Hasan Shehryar, Nomi Ansari, Ammar Bilal, Deepak Parwani, Rizwan Beyg and Nilofer Shahid etc. the company formulates strategies in view of the international market and international competitors like Armani, Prada, and Louis Vuitton etc. Organizing Organizing is really important for defining task and dresser and effectively and efficiently allocating resources for any company. (David, 2005) At Maria B. defining line of authority is important. The company started off with a sportswomanctional structure with Maria being the CEO as well as the controller all designing and marketing activities. With the companys expansion across the borders, Maria B. now is development towards a more divisional structure with line of command spreading internationally. Since the Maria B.Accessory launch in 2006, and the companys aggressive intensifier strategies through market and product development, it wont be long till Maria B. starts working at each production line distributively at the organizational level. At present, the company employs more than 50 management staff in its outlets across Pakistan alone. (Randhawa) Allocation of resources is also another important decision for the company. The company is financed completely by the CEO Maria. Moreover, the use of skilled labor for the job also is carefully selected to give every single piece of work the designer finish. Motivating and Staffing Motivation means influencing people to accomplish specific objectives. Staffing, on the other hand is the essence of human resource management.It includes activities of recruiting, interviewing, testing, selecting, orienting, training, developing, evaluating as well as rewarding. (David, 2005) The Maria B. factory currently employs over 200 workers, all recruited after specific procedures that test there credibility to the profession. Because Maria B. wants to give the best in terms of quality and versatility, hence every worker needs to know how to give the perfect finishing to a Maria B. dress. individually employee is required to make a sample of embroidery or hemming etc that s/he specializes in. In case of training, the companys HR manager is responsible for developing and grooming the workers for perfection.The company believes in Equal Employment Opportunity and every individual be it a man or a woman is selected merely on the basis of his or her talent/skill. (Shaukat, 2009) In terms of wage and safety issues, Maria B. conforms to the Labor Laws, be it in Pakistan or across the borders. In terms of motivations, the company always grants a pay rise every month on the basis of performance. Moreover, the in lieu of employee safety, every process in the factory is automated. Training is given to o perate the machinery. (Shaukat, 2009) The production rate of the factory is the highest among the local designers for formal couture, pret-a-porter lawn on a monthly basis. (Randhawa) peremptory Controlling at Maria B. is done through monetary incentives given based on performance.Employees are first trained and the standards of performance are set. Individuals meeting these standards are considered for the incentives. The company believes in its employees as an asset and retaining them is essential if it wishes to avoid further training and hiring costs. It believes employees become experienced with time and this increases their loyalty to the company which is very essential particularly in present times of economic slump. Marketing Marketing can be described as the process of defining, anticipating, creating and fulfilling customers needs and wants for products and/or services. This is on the button what Maria B. invested upon.The company created the demand of branded designer c lothes through awareness. Maria B. made people shift from the traditional tailor-culture to demand more. Its heavy marketing approach and use of appropriate mix of marketing made it develop a brand name, an identity which no other designer had before. Customer Analysis It involves the examination and evaluation of customers needs and wants. At the time of the companys start up, Maria B. researched on the need of fashion industry, found a considerable target market for her product and then launched the first Pakistani fashion house. She changed the concept of fashion from the dress of the working women to everyday wear.Today her clientele are spread across the globe and includes teenagers to 70 year-olds. Maria B. takes care of the need of each and every age group. Her contrast and selection of colors defines that each and every line is tailored to specific clienteles needs wild and bold prints for the youngsters and neutral and serene ones for adult target market. Her customizatio n to the needs of the customer is an important variable of success of Maria B. (Ghafoor, Face to face with Maria B. , 2002) Planning and Selling Products/ Services Maria B. has the designer need of ready-to-wear dress line for each age-group and every occasion catered effectively to.She take care of everyones needs and desires and relies on adequate promotion activities to retain previous as well as capture more market. Marias pret line of clothing includes formals, semi-formals, party line, Mafia line, bridal line and her new MGirl line. Together with this, she also started her own accessory and jewels line in 2006. Mafia line this is a casual, ready to wear line. Mafia is made mostly in pure cottons, khaddars, lawn, linens and embroidered cottons. This line is in general day wear which is affordable and trendy. Semi formals This range is primarily evening wear- slightly more formal, it plays with exquisite embroideries in resham and crystals on chiffons, silks and georgettes.Form als Perfect for wedding needs, this line consists of silks, jamahwars and heavy hand embroideries in crystals and salma dapka (traditional eastern embroideries) Maria. B Brides A purely couture line which is available only at the bridal studio in Lahore. It is a made to order line for brides and their families. Mgirl this is the new hip and trendy line by Maria B. offering everything from clothes to bags and shoes to accessories. It guarantees satisfaction to the woman who wants it all. It caters to the fun and fearless and is certainly not for the fainthearted. Maria. b Jewels Introducing semi-precious jewelry for weddings, this jewelry in platinum coated with semi-precious stones such as topaz, tourmaline, amethysts and zircons. Official Facebook group of Maria B. ) According to a recent survey, Maria B. lawns have been the largest sellers in terms of number of units in all of Pakistan. (Mansoor, 2008) All this is the result of Marias daunting effort to promote her brand at every level possible. Being a media darling, she relied heavily on print media and PR activities for the promotion of her brand. Some the names in print media are Dawn News, Visage magazine, Instep magazine, Fashion weekly, SHE and others. For PR, Purple Arts have been Maria B. s official consultants. (Shaukat, 2009) Besides these, fashion shows, ramp events have also been another very important source of promotion.But due to governmental issues, these events are snubbed and not promoted to the adequate promotional level. However, the recent Lux Style Awards Red Carpet and Ramp Events (Imam, 2005) and 2007 National Day Ramp Show held in Washington D. C. (Embassy of Pakistan, 2007) served as a very important awareness and marketing tool, provided they continue. Besides, Maria B. also holds her own fashion shows at the international level. Besides being business-minded, Maria B. is also a socially responsible person. She holds ramp events at the national as well as international level to he lp the deprived class of the society through foundations like Kashf.In 2001, on the launch of her Paris Collection, Maria B. held a fashion show in Marriot, Karachi for raising money for Afghan refugees in the country. (Malik, 2001) In a nutshell, Maria B. s success is a fusion of excellent dress designing as well as sophisticated promotion done nationally as well as internationally. Pricing and Distribution This is an important decision in marketing. As for Maria B. this decision of pricing and distribution is a task well done. Maria B. always wanted to make her name in the international market. Since the launch of her fashion house, she has been constantly working to promote her product internationally. At the national level, Maria B. as expanded to almost all the major cities of the country Lahore, Karachi, Islamabad and Faisalabad. She has plans of opening her outlet in every city of the country. But her main goal is to export her product around the world. She wants to make Mar ia B. the brand of Pakistan. And she has been very successful in doing that. Within ten years of business, Maria B. has outlets in U. K. , U. S. A. , India, and Dubai. But export being her strategic vision, Maria B. wants to expand to other cities of the world. I want to send haute-couture items such as evening wear, bridal wear etc. to UK/Europe, and then eventually to the US/Canada, Singapore and Australia. She remains undaunted by the global competition and says you have to aim high and I do want to get to New York, Milan and Paris one day. (Maria B. Fashion Designer) As for pricing, it is well adjusted to the need of the local market. Maria B. has unit- priced her product very intelligently neither very high nor very low or somehow affordable as on critic says. (Ghafoor, 2002) She believes her lines are of the top-most quality and hence, relies on grazing strategy for pricing. Regarding the international market, prices are decided in accordance with the trade regulations o f the country, by adding a mark-up to it. (Shaukat, 2009) Market Research and Opportunity Analysis Maria B. elieves in fashion as a constant transient change. New tastes keep on developing which gives rise to new demands in the product market. Research hence, is always critical to success. Maria B. no doubt has always successfully catered to the needs to its market through research. A recent example is her launching of the new M Girl line with its bold, wild and vibrant colors, keeping in mind the aspirations of the young women of today. (Official Facebook group of Maria B. ) Finance/Accounting Functions With increasing divisional structure of the company, the need of a full-fledged independently operating financial surgical incision was necessary. Maria B. has fully handled that.The company has an independent accountant who is responsible for all the financial matters of the company. Thought most of the information was confidential, however, Maria B. s net profit margin was found o ut to be 6. 77% after taxes and interest. And the companys gross profit margin was found out to be 98. 25% which is quite operative especially in todays era of economic slowdown. With the pursuance of her already implemented strategies and adequate control, Maria B. , no doubt, can become one of the most successful brands of Pakistan. Research and victimisation Research and Development (R & D) has become a necessity in todays constantly changing era. Unfortunately, at Maria B. no specific R & D department exists despite its expansion.All research decisions are made during periodic meetings or by the CEO. However, in lieu of arising need and global expansion, Maria B. is making decisions on having an R & D department. Production and Operations Maria B. works on all types of clothing, from cotton, linen, silk, hand woven khaddar and organdy garments. She prefers working on colors that are bold and vibrant. Colors and material that are bland are not her preference. The cloth is always acquired from the textile hub, Faisalabad. In case if the desired cloth or quality is not available, it is also imported. The production process at the Maria B. factory is highly mechanized and up-to-date.She does not fear local competition because her processes are highly automated and recent. 200 employees in the factory work on monitoring production and focusing on embroidery. Though no special MIS software is in place, the company plans to have one installed soon as market size and demand increases. (Shaukat, 2009)Moreover, all the activities in the companys value-chain is covered by the cost of sale of goods. (SW) INTERNAL ANALYSIS Below are a list of all the strengths and weaknesses that are faced by the company. The strengths are of an advantage to the company while the weaknesses pose threat and need to be minimized and converted in order to prove beneficial for the company. STRENTHS WEAKNESSES Wide product line No delegacy statement Strong Brand recognition No writte n vision statement Almost all brands have a inlet focus Brand cannibalization Decentralized management Lack of focus Diverse brand portfolio Lack of Brand Idea Sharing Internal Factor Evaluation Matrix (IFE) The IFE matrix evaluates the strengths and weaknesses of the company in relation to the ability of its management to capitalize on the strengths and minimize the weaknesses. Company Maria B. STRENGTHS Weight Rating Weighted Score Wide product line 0. 21 4 0. 84 Strong Brand recognition 0. 15 4 0. 6 Almost all brands have a niche focus 0. 08 3 0. 24 Decentralized management 0. 06 3 0. 18 Diverse brand portfolio 0. 03 3 0. 9 WEAKNESSES No mission statement 0. 18 4 0. 72 No written vision statement 0. 16 4 0. 64 Weak advertisement efforts 0. 05 3 0. 15 Lack of brand idea sharing 0. 04 2 0. 08 TOTAL 1 3. 54 Competitive Portfolio Matrix (CPM)The CPM identifies a firms major competitors and its particular strengths and weaknesses in relation to a sample firm s strategic position. Company Maria B. Local Competitors Hasan Shehryar Yasin (HSY), Nomi Ansari, Rizwan Beyg, Nilofer Shafid, Deepak Parwani. KEY SUCCESS FACTORS W Rizwan Beyg OPPORTUNTITIES 1 Expand to the northern areas of the country 1 Increase print advertisement and e-marketing 1 Expand into emerging economies S4,O2, O5 to attract markets like India, China as well as 2 Enter new product markets 2 Increase online selling to Italy and France the local market.W4, 04, 01 3 Acquire more companies S3, S4, 04 4 E-commerce sales 5 Expand stand-alone stores THREATS 1 Target niche markets in the country that is 1 Work on making a written vision and mission 1 Competitors not being targeted by competitors. S4, S1, T1 statement and project it to make the MARIA B. 2 New entrants 2 Advertise on brand quality and corporate identity. W1, W2, T1, T6 3 Economic recession social responsibility to increase customer 2 Increase collaboration, cohesion and idea 4 Political situation loyalty.S2, S4, T6, T1, T2 sharing between local designers at the platform 5 International economies and trade of the BOULEVARD. W3, W4, T3 restrictions 6 Brand cannibalization Conclusion In a nutshell, Maria B. is stamp down the land in the name of Pakistani fashion with her unique and bold styles. And one day, she surely plans to become Pakistans top international fashion label. Bibliography David, F. R. (2005). strategic Management concepts and cases (11 ed. ).South Carolina Prentice Hall. Dawood, T. U. (2003, May 1). The future of fashion. Retrieved January 11, 2009, from Dawn The review http//www. dawn. com/weekly/review/ muniment/030501/review1. htm Embassy of Pakistan. (2007, August 26). 60th Independence Anniversary of Pakistan. Retrieved celestial latitude 26, 2008, from Embassy of Pakistan http//www. embassyofpakistanusa. org/news269_260807. php Fashion Avenue Quarterly. (2003, October). Style Chronology. Retrieved January 10, 2009, from Maria B. www. mariab. com/index. htmchronology Ghafoor, B. (2002, June 5). All eyes on Maria B. 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Retrieved December 26, 2008, from MAG http//www. magtheweekly. com/16/lahore. php Rashed, F. 2007, December 9). Unity at the Boulevard. Retrieved December 26, 2008, from Dawn Images http//www. dawn. com/weekly/images/archive/071209/images1. htm UNDESA. (2006, December). Pakistan. Retrieved December 30, 2008, from Internet World Stats usage and population statistics http//www. internetworldstats. com/asia/pk. htm Salwa Shaukat L1S06BBAM0001 Javeria Maqbool L1S06BBAM0032 Sana Azhar L1S06BBAM2024 Kanwal Tariq L1S06BBAM2037 Submitted To Professor Nasir Riaz external and internal analysis Industry Fashion Industry Company Maria B.