Annexure-V- Cover Page for Academic Tasks

Course Code: MGN 806 Course Title: RETAIL MANAGEMENT

Course Instructor: Mr. Rajeev Gupta

Academic Task No.: 03 Academic Task Title: Case based Assignment

Date of Allotment: 15th APRIL 2020 Date of submission: 24th APRIL 2020

Student’s Roll no: RQ5E30A14 Student’s Reg. no: 11909565

Evaluation Parameters:

Learning Outcomes: Different retail strategies and problems.

Declaration:

I declare that this Assignment is our individual work. I have not copied it from any other student’s
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.

Student signature:
Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks: ………………

 INTRODUCTION

The QUINCY APPAREL Case is based on a current managerial and strategic problem being
faced by the organization, which must be solved tactfully to allow progression, as well as
maintain a competitive position.

Quincy Apparel designs have been pursuing to manufacture and sell work apparels for the many
young professional's women offering the fit sizes of some high-end products at standard prices.
One cold night in late 2012, the founders are debating on the manner in which they shall
approach a crucial board meeting. Their startup money is running low on cash; in order to
survive, they need to put in more capital probably in the manner of a bridge loan from the current
investors that is the matter to solve in the board meeting. Sales at the company have been quite
active, but due to the issues of company’s novel sizing scheme that is involved in providing a
higher measurement dimension than the normal women’s clothing, inventory has large and
simple operations have become complicated. The operational challenge has become a constant
constraint to deliver better fit whereby the merchandise returns are high. Given more time and
capital, the co-founders are more confident that they can solve the issues of operational
problems. To survive it is true that the company needed cash. Getting the much-required help
means that they had to hold their ground in telling everyone the primary purpose of the venture
despite the challenges. Offering better-fitting apparel for most women was Quincy’s key source
of differentiation and was central to the startup’s mission; that is the business they believe and
wanted to build from day one and that has to be until his final day, restricting size ranges would
compromise that mission.

Quincy's sales have been powerful, but due to the company's innovative sizing system, which
provides more measurement dimensions than do typical women's clothing companies, inventory
is high and operations are complex. Operational challenges have made it tough to consistently
deliver better fit, and merchandise return rates are not low.
 PESTEL ANALYSIS

POLITICAL FACTORS:

Political factors and elements can have a direct and indirect impact on the business. This is seen
through the QUINCY APPAREL case study.

Policy Makings

• Policymakers for the QUINCY APPAREL Case are in all likelihood to intervene in the
business surroundings. Commercial restrictions and political stability are additionally
integral factors that would have determine the success or failure of it.

Taxation

• Tax policy influenced the cost of doing business for QUINCY APPAREL. An increase in
organization taxation had a similar impact as an expansion in expenses. Organizations
could pass a portion of this increase on to shoppers in more expensive rates, yet it would
likewise influence the bottom line of the business.

Government Support

• The government helps organizations in two primary ways: monetary help and regulatory.
QUINCY APPAREL could’ve used government assistance and grants for purposes of
growing the business, advancement, exporting, and innovative work. It can also be
impacted by when Governments modify regulations and laws.

Political Stability

• Lack of political stability in a country impacts business tasks. Political stability is

particularly essential for the organizations which work globally, such as QUINCY
APPAREL. A forceful takeover could oust a legislature. The takeover could prompt
mobs, plundering and general issue in nature. These disturb business tasks for QUINCY
APPAREL. Purchasing political risk insurance was a way for it to oversee political
 hazard. Organizations that have worldwide activities utilise such as insurance to lessen
their risk presentation. The soundness of a political framework could influence the
attractiveness of a specific nearby market for QUINCY APPAREL.

ECONOMIC FACTORS

The economic factors are one of the most important of PESTEL factors and can influence
QUINCY APPAREL in several ways.

GDP

• Economic components have the most evident effect on the profitability and overall appeal
of QUINCY APPAREL. Even though GDP per capita is a useful economic factor, GDP
per capita gives just a fractional perspective on the economic factors that may influence
QUINCY APPAREL. Higher GDP leads to higher disposable income and hence higher
sales for QUINCY APPAREL.

Inflation

• Higher inflation will disintegrate the purchasing power of the consumer and the shopper.
Higher inflation will also harm the costs of raw materials and other inputs that are utilised
by QUINCY APPAREL.

Interest Rates

• Fluctuations in interest rates may translate into higher or lower costs for the purchase or
sale of items and administrations provided by QUINCY APPAREL. Higher interest rates
hurt the disposable cash of consumers.

Unemployment Rate

• A high unemployment rate is also unadvisable as it dissolves dispensable income of

consumers, and will harm QUINCY APPAREL’s position. The high unemployment rate
 will lead to lower sales for QUINCY APPAREL and impact its overall profitability and
revenues.

SOCIAL FACTORS

Social influences will stem from social components of the macro environment. Under the
PESTEL Analysis, they can influence QUINCY APPAREL in several ways:

Social patterns and consumer behavior

• Social patterns affect work trends and patterns and are directly related to the behaviors of
consumers. Social patterns also have a direct influence on buyer tastes and inclinations,
and the specific kind, structure, and volume of interest for an item or service.

Social patterns and changing consumer needs

• The checking of social patterns would’ve enabled QUINCY APPAREL to reposition its
items or administrations to meet the changing desires and needs of consumers.

Social trends in education

• Social trends of higher education have allowed firms like QUINCY APPAREL to have
access to a pool of higher skilled talent – but at the same time, also face a more criticising
consumer base. Higher education has also made consumers more aware of different
product offerings by companies like QUINCY APPAREL. Consumers are also more
educated and knowledgeable of different substitutes of a product, as well as become more
readily available at different touchpoints.

Social patterns make companies more consumer-centric

• Company like QUINCY APPAREL was expected to become more consumer-centric than
product-centric. Similarly, Market segmentation and consumer grouping are dynamically
moving towards measures of psychographics and lifestyles to understand the consumer
more.
TECHNOLOGICAL FACTORS

The technological factors can influence QUINCY APPAREL in several ways:

Innovation

• The quick pace of technological change at QUINCY APPAREL may be driven through
innovation. Business leadership at QUINCY APPAREL tried to push the limits of present
limitations.

The advent of the internet and online retailing

• The expansion of the Internet and online business has discarded many intermediaries.
QUINCY APPAREL could’ve communicated and retailed directly to the consumers now,
or through modern intermediaries such as eBay as well, for example. It could’ve also
used current social networks to retail and use e-commerce to boost sales.

Social media and business growth

• QUINCY APPAREL could’ve make use of social media to interact and reach with
consumers. Social media can also be used to reach the target market audience more
effectively. Social media is cost-effective and strategically more influential for QUINCY
APPAREL

Improved value chain network

• For QUINCY APPAREL, technological innovation could be utilised to build on

competitive advantage through several different ways. QUINCY APPAREL could’ve
incorporated less expensive production, improved access to clients, improved marketing,
improvement in product quality, and increased levels of business intelligence than the
competition.
ENVIRONMENTAL FACTORS

For QUINCY APPAREL, the environmental aspects of the PESTEL analysis may include:

Environmental stability and business standards

• QUINCY APPAREL expected to incorporate maintainability standards into their

business methodologies and to help resource allocation choices. It may also be subject to
environmental laws – which will impact and guide its operations to become more
environmentally friendly.

Environmental stability and budget allocation

• Leadership in the QUINCY APPAREL must measure the connection between natural
activities and budgetary execution. It also strategically decided and assessed if the
organization have been estimating the monetary effect of natural and social activities.

Environmental sustainability

• QUINCY APPAREL distinguished and differentiated explicit zones of concern and

impediments to the coordination of environmental sustainability into corporate
performance and strategy. It also gave explicit direction concerning how organizations
can push toward a superior reconciliation of ecological and social activities in their basic
leadership procedures and tasks.

Environmental sustainability and business growth

• QUINCY APPAREL may use environmental issues to adjust financial, natural and social
performance. Concerns towards the environment will enhance the business image for
QUINCY APPAREL. Environmental sustainability within business goals and strategy
will also reflect corporate responsibility on the part of QUINCY APPAREL.
Environmental sustainability and improved consumer relations

• Consumers will be more inclined towards the use of environmentally sustainable

products. Environmental sustainability in operations works towards improving the bottom
line and overall profitability for the business of QUINCY APPAREL. Improvement of
cost management and operations will be observed in the business as well.

LEGAL FACTORS

Legal components can influence QUINCY APPAREL A directly, and can likewise influence the
instruments through which an organization buys its stock or connects with the client. The
QUINCY APPAREL A should be mindful, for example, of the following legal aspects:

Labour law

• Labour law refers to the guidelines in regulations that set up minimum and benchmark
conditions. These include identifying with the work of people. Labour laws include
aspects of minimum working age, least time-based compensation, etc. QUINCY
APPAREL must be mindful of these laws in routine business tasks such as hiring, for
example.

Discrimination law

• Under the discrimination law, QUINCY APPAREL must’ve ensured to avoid episodes of
unequal or uncalled for treatment based on an individual's age, inability, sex, national
source, race, religion, and sexual orientation. It should’ve trained its human resource
management team in ensuring that there is no:
o Unequal hiring
o Discrimination in recruitment
o Internal discrimination in talent management
o Bias in training opportunities
o Unfair compensation systems
 o Prejudiced promotions and succession management

Health and safety laws:

• Under this, QUINCY APPAREL is required to give a protected work environment to

their workers. Working environment security and wellbeing laws build up guidelines
intended to dispense with individual wounds and injuries from happening in the work
environment.

PROBLEM IDENTIFICATION AND ANALYSIS

1. Improper Brand Positioning:

For every product, brand positioning decides what kind of market, what types of customers, what
price of the product and what challenges as well as competitors they will be faced with. While
for Quincy Apparel, it does not give a right brand position of itself to defend all external negative
influence and give the best plan for company development, as well as it can’t fetch the product’s
price either.

2. Wide range of varieties:

Quincy apparel did not offer varieties or more categories to their target market. Therefore,
customers were left with very less options for consumption.

3. Premium prices for most portfolio products:

QUINCY APPAREL had a premium brand image attached, and thus all its products in the
portfolio were priced highly. This expands overall revenues yet decrease the affordability of its
items. This internal key factor is a shortcoming since it confines the organization's share of the
overall industry, particularly in territories with generally lower disposable earnings.

4. Market plan:

Quicy apparel built their marketing approach based on trends but fail to hire or engage the talent
to execute with experience and confidence.

5. Availability of substitutes:

Though the quality was unique to QUINCY APPAREL, the competing players had also
developed close enough, and acceptable products. As the competition was high for quincy
apparel, so does the product which they offered also had a large number of substitutes available
in the same market. Therefore, QUINCY APPAREL was unable to position its product in the
market effectively.

6. Lack of proper coordination:

The co-founders as well as the assigned employees did not had a proper coordination among
themselves regarding the organizational decisions.

RECOMMENDED SOLUTIONS

Based on the overall analysis done for QUINCY APPAREL, there are few recommended
solutions which would have helped the company to take on strategic directions which would
have enhanced its core competencies and capabilities, as well as reduce its chances for risks and
threats. The following recommendations are thus made for QUINCY APPAREL:
1. Market expansion

Another strategic recommendation for QUINCY APPAREL is to expand into newer regions and
markets. This can be done by expanding into new markets, firstly. This expansion will give the
company exposure to new consumer groups. Increase the overall consumption rate, as well as
diversify income streams. Also, it will give the company related expansion exposure regionally
as well as internationally.

2. Market penetration

By adding new products or by product diversification, the company will be Able to penetrate
deeper into existing markets by exploring new consumer groups, and new target consumer
groups. This will also diversify income streams for the company, and increase its overalls share
of the market.

3. Strengthen value network

By strengthening the value network further, and by adding quality and enhanced elements at
different stages, the company will be able to maintain competitive advantage, as well as put off
new players from the industry by increasing barriers to entry. This will allow the company to
maintain sustainable competitiveness over other players, as well as maintain a possible
leadership position in the local and international markets and industry.

4. Increased number of retail outlets

More number of shops or making the product more widely available would have been effective
for the business. This could have been done through increasing the accessibility of the product at
places where the target consumers are expected to purchase from, as well as improving the
interaction of the product with consumers at different touchpoints.
5. Online retailing

QUINCY APPAREL could have stocked its products on online retailing sites locally and
internationally. This would have helped the company improve sales, accessibility, as well as
reach higher levels of target consumers. All of this, in turn, would have increased market
penetration. Besides, it would have also helped the company maintain and control costs and
thereby help it achieve cost leadership in the industry.

6. Research and development

To be able to develop new products, the company should have a focused interest and budget
sending allocated to new product research and development. This research would taken a basis in
the consumer market and the overall market trends, to identify the gap in consumer demands,
and market availability of different products. The new product would then generally be aimed
towards fulfilling this gap.

7. New product development

The company should have dedicated incubation labs for the development of new variety of
products. This means that this development should have a separate entity that should focus on the
company’s innovation. The company should have also hired the right talent for business
development and innovation to be able to achieve targets and goals accordingly.

8. Market testing

New products should’ve followed PD cycles for testing before launching in a market. This will
ensure that the company can fix any loopholes present in the product, as well as incorporate
positive feedback.
REFERENCES

https://www.case48.com/case-analysis/36335-QUINCY-APPAREL-A

https://caserighted.com/quincy-apparel-a/