Ackermans Business Technique Approaches

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Introduction

This paper talks about two distinct investigations that may be connected into Ackermans business technique approaches. The paper starts with SWOT analysis, at that point proceeds to value chain investigation, just as the assurance of the value adding including activities of Ackermans. Further, the clarification additionally examines a portion of the assets and capacities that lead the capabilities of this organization. The essay closes with certain recommendations that may be considered by a CEO to be the future difficulties for this organization.

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To begin with, researchers suggest that SWOT analysis can be utilized as a tool to help an organization determine its strengths which are what a firm can improve, weaknesses as those activities that it can't do. Likewise are the opportunities, the potential positive conditions for the firm and then again, threats which are its potential unfavorable activities (Clardy, 2013). Further, (Ramooshjan et al., 2014) recommends that, using a SWOT investigation encourages the organization to takeoff from strategic plans which align with the overall business model, in this manner making it an adaptable instrument for the firm to focus its future goals on its strengths.

Then again firm's resources and capabilities, are what considered among others as assets, funds, its capacities and potentials, as well as marketing strategies, which together over the long run may enable the organization to remain competitive. Adding to that, as the business integrate its internal operations and external enterprise networks, the organization's resources and capabilities can influence performances in different functions, for instance the work crafted by R&D group might be of an incentive for utilizing the firm's viable executions (Reeves et al.

2015).

Further, value chain analysis then again is another methodology in aiding a firm's cost structuring capabilities, for example its superior R&D teams can also influence the decision making on high innovation procedures and designs of the firm's goods and services, yet in addition to prompt the competitive advantages in the market.

Results of SWOT analysis and Discussion

The analysis reveals the following;

Strengths: Because of its proficiency in value chain activities, the firm has figured out how to rack higher net revenue regardless of rivalry in the market thus fortify itself to remain competitive over the long haul. Different from its adversaries, the organization keeps up an unmistakable way to deal with the recruitment of its designers. Practically the majority of them originate from design schools and they are exceptionally young and self-motivated. These people are picked not as a result of their experience but rather attributable to their enthusiasm and talents. Young designers sit directly amidst the production procedures, working intimately with the market specialists and acquisitions and production planners. In this way, Ackermans can accumulate a huge and diverse scope of ideas and create quality range of clothing line, which enhance firm's core competence of having a short-life cycle products.

Furthermore, in managing its inventory the organization's low stock turnover is attributable to the fact that the firm outsources practically the majority of its garments to local and international suppliers and manufacturers, and purchases cheap garments in large quantities. Improving the acquiring procedures and lessen lead times, as well as making choices of picking suppliers considering cost-proficiency, transportation time, import standard and quality. Consequently, Ackermans has decreased normal lead times thus enabled its distribution channels to stock rapidly. These steps are particularly appropriate to the apparel segment since perspectives, for example, size and colour which present complex management issues, are then again central to product quality. In this manner, as per Ellawindy (2013) proposals, an ERP system can likewise enable the firm to accomplish progressively its assembling structure, increasingly productive activities and customer driven business procedures, and firm-wide data visibility and consistency from the improvement in decision making to reinforcing company's operations.

On top of the above points, the firm's reputation of innovative activities can likewise be viewed as another strength that the organization continues offering its market and so satisfies the expectations of definite consumers. To earn the status of potential innovation at Ackermans, an idea must put forth its defense. Initially, it must be a convincing proposition for customers. It must be adjusted to the organization's brands, create sturdy competitive advantage, utilize the company's patents, innovation, circulation, brand strength, corporate scale or some other preferred standpoint one of a kind to the organization with the goal that competitors can't imitate as well as the possibility of genuine value to firm's shareholder (Kai et al., 2015).

Weaknesses: This essay considers the organization's business model a weakness, because of the way that the model can be somehow imitated by the rivals in the apparel industry. Managing this, the essay proposes that the firm needs to utilize viably its resource planning systems to help in decision making through coordination its suppliers, distribution channels and final consumers. At the point when the business data between these key stakeholders is flowing easily, the essay recommends that the organization can create progressively remarkable approaches to maintain its competitive edge over competition in the market. Hence, this essay likewise proposes that Ackermans should concentrate more in redefining its functional roles in the entire value chain of the business by co creating incentives with all stakeholders, for example by giving more incentives to the consumers thus shifting to a cross-channel strategy instead of working through each channel independently (Lanlan, 2014).

High expense of replacing existing experts inside the organization is another shortcoming to Ackermans as couple of workers in the firm, are in charge of its knowledge base thus replacing them is very difficult in the current conditions. Low employees involvement in decision making can be considered as a challenge that the firm faces nowadays, so in order to diminish attrition rate and retain talented employees, researchers argue that an organization should concentrate on adoption of various employee commitment strategies, for example including workers in the basic decision processes, giving chances to developing and improving their working abilities, acknowledging their best performance, providing work life balance, satisfactory compensation, and wellbeing and security programs, among different variables (Neerpal and Kidong, 2015).

Further, low investments into customer oriented services is another weakness which can prompt competitors gaining advantage in the market. Research and development ventures should be enhanced for the organization to pull in new customers and retain old ones. For example, the essay considers the presence of cutting edge salespersons as delegates of the first impression of the organization in the customer's brain. Their service providing behaviors likewise increase the value of what the company is offering and also providing psychological and social values to the customers. To most consumers, shopping is an activity that produces fulfillment from more than just the utility of the product purchased. The social or customizing customer appreciates discussion with the frontline sales staff the more they will seek for personal relationships with sales personnel hence this may enhance customer experiences in the distribution channels and boost their purchasing behaviors. The store condition including supportive personnel may in this way positively impact customer's feelings as researchers have revealed that service attitudes and behaviors of frontline service make an enduring impression that determines consumer's perception of the firm and consumer loyalty (Sherriff et al., 2013).

Last however not list, high turnover of employees can be another weakness to the organization which may also increase costs of retaining talents. This essay proposes that the firm ought to motivate its employees to feeling as they are affective committed to the organization. As indicated by Neerpal and Kidong (2015), "affective commitment is the employee's emotional attachment to, identification with, and involvement in the organization." Commitment of this sort reflects the longing to accomplish objectives for the firm consequently ought to be described by shared qualities, individual contribution, and personality pertinence.

Opportunities: This essay considers lower inflation rate as an opportunity for the company, since low rate can bring greater steadiness in the market, enabling products on credits at a lower interest rate to the customers which may bring about expanding the consumption of the company's offerings. RBA (2016), recommends that inflation expectations are influenced by universal and local economic developments, the more extensive macroeconomic context in which the retail firm works. The organization has had sooner or later brought down margins each product, except selling in higher volumes, which enables Ackermans to pay fixed costs and achieve greater economies of scale.

Moreover, opportunity in online space is additionally a positive thing to the organization as its customers will increment embracing the online services and therefore the organization can be enabled to provide new innovative offering services to the customers on the internet. As online retail keeps on replacing conventional retails, e-customers' requests have additionally been expanding quite significantly which is attributable to the expanding embracement of online based shopping among customers (Mkansi, 2013).

Additional, the essay also considers firm's coordinated efforts with suppliers in the republic and oversees as the organization's opportunity since tying up with different players can likewise provide opportunity of developing into global markets. Retailers plan supplier selection criteria to choose the correct input products from the correct suppliers since purchasing from the 'right ones' can prompt a reduction in costs, an expansion in quality, and an assurance of on-time delivery and thus helping the firm to provide quality clothing line into the market (Naude 2013:12).

Besides, customers will in general move to higher end products because of evolving trends, preference and tastes, consequently this circumstance can represent amazing opportunity for Ackermans as the firm has solid brand recognition in its offerings, for instance the premium segment. Likewise, its customers have experience with its excellent customer services and thus tends to be a win-win situation for the organization. Various studies evaluated how brand perceptions, brand quality, customer experiences, sales promotions and social considerations may impact customer's purchasing decisions and behaviors (Neha and Manoj 2013).

Last however not list, as (Muruganantham and Bhakat, 2013) recommends that customer preferences are fast changing in light of the fact that they are driven by rising disposable incomes, easy access to product information, and a quick adaption of technological services, so customers today are more willing to experiment and attempt new products in the market. Consequently, Ackermans needs to deliberately monitor deferent trends in the market.

Threats: Competition from both local and global rival's product development can convey solid difficulties to the organization because of their endeavors in attempting to imitate the organization's production moves. Therefore, as indicated by Chang et al., (2015:136) Ackermans should approach consumer loyalty, for example by concentrating on its value adding activities in its distribution channels as there seems to be some relations with individual customer experiences in the retail outlets, and with the production satisfactions. By doing this, the organization may encourage its great practices to remain exceptional and unique over the long term.

Gulen and Ion, 2016 clarify another risk which is the changing political conditions in international markets where the firm is directly investing its business enterprises, saying the instability can affect Ackermans business causing the rise of unexpected costs.

Last however not list, (Horwitz, 2013) describes a shortage of skilled human resources as a threat, given the high turnover of employees and increasing dependence on innovative solutions.

Resources and capabilities: This essay considers the company's financial strengths, physical and human, technological and its reputation to be its resources, as well as its capacity for undertaking a particular activity as its capability, for instance its core and distinctive competences (Market line, 2013). Moreover, the Ackermans' patents, brand recognition, reputation, accumulated learning, attractive locations and installed data bases utilized to reach its operation excellence. Adding to the above is the company's store layout which is designed for customer comfort with wide aisles and vibrant, fun merchandising making it easy for goods to be found and with clearly priced as well as the product line that the firm ensures is ongoing available to customers. On top of all that there is a radio called ACK, which is an interactive in-house station broadcasting from the Support Centre for all stores as a targeted marketing tool that adds customer excitement.

Value chain activities:

One of Ackermans' value chain activity is that it has establish a clearly defined business strategy and purpose. Bringing value to lives of customers, as well as staff, shareholders and the community as opposed to increasing prices in an effort to alleviate the pressure from the competition in the market. Solution is to focus on building better and favorable corporate reputation so that it can lead to several marketing benefits and contribute considerably to a long-term competitive advantage (Terblanche, 2014). Aside from the financial value that a favorable corporate reputation can create for a firm, another major benefit is its intangible nature that is difficult for competitors to emulate.

Additional value adding activity is the retention of supplier relationships, which is appeared to be vital to the firm's prosperity. The firm recognizes that single firm capabilities are no longer sufficient for achieving competitive advantage and so the company focuses on developing close relationships with suppliers and customers. Building effective supply chains offers opportunities to create sustainable competitive edge. This essay understands that by optimizing partnership along the entire chain of steps involving in the production, marketing and selling of a product whether it is a good or service, may result in producing the greatest value at the lowest possible cost (Luciana et al., 2013).

Further, due to fluctuating currency which is oftentimes implies that there is an immense disparity between the planned exchange rate at the time of supply order, versus time of delivery, therefore rather than conceding an in store price escalation, the firm chooses to rather absorb any impact as a business so that it can pass the savings on its customers. This approach has resulted in a growth of customers as well as growing of customers' loyalty, and profitability which takes care of itself (Morris and Levy, 2014). In addition, decisions making on where the company wanted to lead, knowing who its customers are, and then understanding how the firm can consistently bring most of its value to consumer lives are other value adding activities. Therefore this essay recommends that the company needs to offer more quality clothing line which can only be delivered through the collaboration between suppliers and their quality inputs, skilled and motivated employees, great management and a better communication flow between all other stakeholders.

Ackerman's future challenges:

This essay recommends the following; Due to South African apparel sector facing an outrageous challenge from imported clothing. This threat which comes not only from China and other Asian low cost country production sites. It has also shifted to more competitive producers within the nation itself who present severe challenges at the middle end of the market (Lesotho and Swaziland) or at the higher, more complex segments (Mauritius and Madagascar). The local apparel sector is thus under severe threat at all market segment levels, whether researchers are discussing those firms operating within the parameters of bargaining council compliancy, or the non-compliant Chinese owned firms in Newcastle and small informal economy enterprises who largely trying to compete on price alone.

Therefore there is some sort of a need for a government to provide a support to larger and more advanced firms (such as Ackermans), that have the capability to meet the evolving domestic retailing demand for speed, flexibility and assured quality standards, and that may even be able to establish themselves as exporting platforms for quality apparels from small retailers in a global market. In addition, the fact that an increasing demand on electronic commerce continues to rise, to repetitively develop technological infrastructures, such as telecommunications and business systems relying on the internet, so as to enhance firm's services towards the provision of online markets can bring inevitably challenges to the Ackermans in the long term.

Last yet not list, economic condition changes can likewise influence the customer consumption and so slowing an increase of household's income supported by brand perception for consumers in international markets and lead to consumer's product taste changes and purchases behaviors to shift to substitute offerings.