Essay About Ceecee Retail Fashion Case Study And Faster Rollout Of Shops

Ceecee Retail Fashion Case Study
Financial results and business planRef.IssuesTechnical knowledge1.Highly profitable business with an operating profit margin.SWOT (Strength)2.All sales revenue figures exclude any sales tax (such as VAT) and gross margin are stated after the purchase cost of the manufactured products only.SWOT (Weakness)4.-The latest full year forecast for 2009 is not as bad as was first feared.-The full year forecast for the ended 31 December 2009 generated an operating profit of 634 million.SWOT (Strength)5.Diane Innes is confident that the actual account will reflect the result shown in this latest full year forecast for 2009.SWOT (Strength)8.Fast fashion essentially replicates the principles of the manufacturing technique of “Just In Time” (JIT)SWOT (Strengths)9.a) Focusing on up to minute fashion styles for women at affordable priceCost leadershipb) priced “look alike” clothing ranges which were very similar to higher-end clothing fashion shopsDifferentiation (Hybrid strategy)10.a) if Carla Celli wanted to scale up her business model to cover more citiesAnsoff Matrix- Market developmentb) Carla Celli would have to become much more business minded and try to think “outside the box”Product developmentc) Carla Celli decided to implement Paulo Badeo (logistic IT consultant) ideas for the fast fashion model for a greater number of retail shopsInnovation11.inevitably fail because the costs of constantly changing and shipping new fashions could not recouped by high enough marginsSWOT (Threat)The last twenty years of “mass” fashion industry experience showed that the way to go was long production runs and the outsourcing of production to low cost producers in AsiaCost leadershipc) Carla Celli had recruited a set of experienced professionals in the design, finance and logistics areas to help implement effective cost managementValue Chain Analysis (VCA)- Support Activities (HRM)12.Carla Celli had plans to expand into menswear, children’s clothing and some home furnishingsConglomerate diversification13.In 2000 CeeCee was listed on a major European stock exchange- enabled a faster rollout of shops across Europe- give access to less expensive debt finance SWOT (Strength)14.Due to the weak economic climate during 2009, CeeCee only opened 20 new shopsPESTEL (Economic)15.a) CeeCee sells men’s clothing, children’s clothing and a range of home furnishings at selected medium and larger size shops.SWOT: Strength4P’s: distribution channelb) CeeCee is still considered to be mainly a ladies fashion clothes shop.SWOT: OpportunityBrand image16.CeeCee achieved an overall gross margin of 60.1% during the year ended December 2008. – No delivery costs and direct sales staff costs were charged.SWOT: Strength17.a) Range of home furnishings that CeeCee currently sells includes textiles, such as bed, table and bathroom linen also tableware items.b) The home furnishing ranges are constantly being updated and new designs launched, which are popular among customers of young professionalsProduct developmentSWOT: StrengthPESTLE: Social5 Forces: Buyers’ force can be moderate18.a) Another product range that generates high gross margins is clothing accessories.- CeeCee shops stock limited ranges of accessories.- Large sized CeeCee shops display full range of accessories to encourage shoppers to buy. Product development7P’s: Promotion, place5 Forces: Buyers’ strengthSWOT: Strength, Opportunity19.a) Prime locations for all of its shops, and in some city centres CeeCee has seized the opportunity to use historic buildings in key shopping areas.7P’s: PlaceSWOT analysis-strengthb) Spacious shops which use sophisticated architectural details and designs to make shops appealing to customers to browse and to provide a comfortable environment in which to shop.PESTEL: SocialSWOT analysis-strengthCarefully designed shop window displays which are changed at least once each week, allowing the latest clothing designs to be “show cased” to prospective customers. d) Careful and visually appealing layout of clothing displays, so as to attract customers to choose coordinating clothes and accessories and to maximise sales revenue.7P’s: People, Place, Promotion VCA-Primary Activities (Marketing and Sales)SWOT analysis-strengthe) Excellent customer care. CeeCee carefully recruits and trains all of its employees to ensure that the customer is put first. This philosophy is behind all aspects of the work in all of CeeCee’s shops. The emphasis is put on providing an un-crowded pleasant shopping experience where the customer is not approached by shop staff unless asked, but shop staffs are constantly available if required. All shop managers encourage team work and the building of long term working relationships to improve the standard of customer care.VCA-Support Activities (HRM)7P’s: PeopleSWOT analysis-strength