Source of Finance Report - 3389 Words

Source of Finance Report I’m writing to you to give you more advice and guidance about which sources of finances should you go for. I’m going to give you a detailed analysis of the advantages and disadvantages of each source that will be appropriate for your business. External and Internal Sources of Finance External sources of finance are any sources of capital that can provide small business capital. For example a major external source are banks who can provide capital to your business to start up, the running operations of your business and for your company’s expansion. Internal sources of finance are any capital that is found within your business. For example you can retain yours profits for backs profits for business’s activities†¦show more content†¦To get a bank loan, you and your business partner need have good credit scores, if you don’t have good credit scores. Then the bank will be more reluctant to lend you reasonable bank loan. Also if you and your business partner fail to repay the loan, the bank will demand that you sell some of your assets (property or car). I would suggest that the owners of Caveman Brewery pick a bank loan that they can afford to pay back. It would less stress on the owners as the bank is not chasing them for payment. Capital Capital is essential for your business’s growth, this enables your business to pay off debts, company’s expansion and be able to compete in competitive market. Venture Capital Another of form of gaining capital is venture capital. Venture capitalists are a panel of wealthy investors who can provide capital to your business so you and your business partners can carry out your business’s activities. â€Å"Venture capitalists can introduce your business to an extensive network of strategic partners both domestically and internationally† and they can help advertise your business to gain the public attention. Advantages The major advantage of venture capital that it can provide a source of capital into your business. For example you and your business partner have a business idea but don’t have enough capital to bring the idea into the brewery market before any of your competitors enters theShow MoreRelatedGfsgsdf Hshsdfshfd Sdhgw1479 Words   |  6 Pagesunderstanding of the purpose of managing resources effectively, not only in relation to human resources but also in terms of physical and technological resources. Learners will also gain an understanding of how an organisation can gain access to sources of finance, both internally and externally and be able to interpret financial statements. There are clear links between this unit and many of the other units; it serves as a useful introduction to areas that may be covered in depth in further units. Read MoreManaging Financial Resources Essay examples1182 Words   |  5 Pages 2. Identify the sources of finance available to a business.(P1.1) 3. 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Example Waitrose gets money by selling their products to the customers and hence customers are the different classes Internal and External source of financeRead MoreManaging Financial Resources and Decisions Essay1355 Words   |  6 Pagesimplications of finance as a resource within a business 2 Introduction In this essay I will be discussing and understanding of where and how to access sources of finance for a business, and the skills to use financial information for decision making.    Finance is essential for a business’s  operation, development and expansion. Finance is the core limiting factor for  most businesses and therefore it is crucial for businesses to  manage their  financial resources properly. Finance is available toRead MoreIf Assignement1521 Words   |  7 Pages ACADEMIC YEAR 2013/2014 Bachelor of Science (Hons) Actuarial Science Bachelor of Science (Hons) Financial Mathematics YEAR 3 TRIMESTER 2 UKFF 3243 INTERNATIONAL FINANCE ASSIGNMENT (Question) ------------------------------------------------- ------------------------------------------------- Pick a multinational enterprise (MNE) from Table 1 below and answer ALL questions. Table 1: List of Multinational Enterprises | Acer Inc. (Taiwan) | Aeon Co. Ltd. (Japan) | Adidas AG (Germany) | CarrefourRead MoreThe Key Departments Of The Business1529 Words   |  7 Pagessupports the business to build and embellish in all worldwide markets. This report will consider what the key departments do for the business, in addition, this report will enlighten the research procedure used and significant complications which have been encountered throughout. Key departments within businesses Departments in businesses all partake in important roles, departments such as human resources, accounting and finance, production amongst others remain vital to the company so it can work progressivelyRead MoreThe Key Departments Of The Business1529 Words   |  7 Pagessupports the business to build and embellish in all worldwide markets. This report will consider what the key departments do for the business, in addition, this report will enlighten the research procedure used and significant complications which have been encountered throughout. Key departments within businesses Departments in businesses all partake in important roles, departments such as human resources, accounting and finance, production amongst others remain vital to the company so it can work progressivelyRead MoreCU2691 Support Individuals To Manage Their Finances937 Words   |  4 Pagesï » ¿CU2691 Support Individuals to Manage Their Finances. 1. Know how to access information and advice about financial affairs. 1.1 Identify sources of information and advice about methods and services for managing personal finances. Citizens Advice Bureau Financial Services Financial Advisor (Bank) Internet websites Council Offices 1.2 Identify sources of information and advice about benefits and allowances. County Council Benefits Office www.gov.uk/browse/benefits/entitlement 1.3 Describe the role

A Greek Play Created By Sophocles - 1608 Words

A Greek play created by Sophocles around 335 BC, Oedipus the King tells a story about one man’s irony to find the previous’ king’s murderer to seek justice. Oedipus stops at nothing to find the killer. As he questions the citizens, he only finds himself to be the killer. In this essay we explore how one major event can create multiple forms of conflict. The conflicts of Human vs. supernatural, the predestined fate of Oedipus and the gods. Human vs. human, when Oedipus heeds no warnings and stops at nothing to find the truth behind his true identity. And lastly; human vs. self, where Oedipus’ curiosity puts him in a fight amongst himself that he cannot win. Human Vs Supernatural Whilst Oedipus was still in the womb, an oracle from†¦show more content†¦In a way it was fate from the very start. From the time when his parents talked to the oracle, up until he was placed on the mountain after birth. It was fate that he was then found by the herdsman who then took him back to the city of Corinth. He lived with his adoptive parents until he left, it was at the crossroads where he murdered the man who almost ran him over in a carriage. That man was Laius, his father. As destined he then married his mother. When a plague hit Thebes, Oedipus sends Creon to the oracle who tells him that the only way to end the plague is to find out who had killed Laius, the previous king. He needed to find them and banish then to demolish the plague from Thebes. Oedipus inquires for Teiresias, of whom he then accused of murdering the late king when he refuses to speak of what he knows. Even after being accused shamelessly by Oedipus of murder for being silent, Teiresias responds â€Å"It is not fate that I should be your ruin. Apollo is enough, it is his care.† (p.435). Teiresias is saying that no matter what he would have said, or what he did not say, that it was destined by the gods to happen anyway. Oedipus confronts Teiresias about how he himself saved Thebes by successfully solving the sphinx’s riddles on his wit alone. With knowledge that Oedipus is great at solving riddles, Teiresias taunts him saying† This day

Ann Taylor Free Essays

string(35) " 2 billion in fiscal 2009 and \$1\." Table of Contents |Executive Summary |2 | |Company background Current Marketing Situation |3-7 | |Marketing Objectives |7-8 | |Opportunity Issue Analysis |8-13 | |Marketing Strategy Actions taken |13-16 | |Appendix 1 2 |17-20 | |Bibliography |21 | Contributions (write ups only) Executive Summary, Company background Marketing Strategy- Priyanka Chigurupati Marketing Objectives Marketing Strategy- Maira Braga Opportunity Issue Analysis- Judy Seng Yui Yasuda Executive Summary Ann Taylor Stores Corp. has been one of the largest apparel and accessories firms in the fashion industry for a long time. It has four divisions; Ann Taylor, LOFT, Ann Taylor Factory and LOFT Outlet each of which caters the same category of apparel and accessories, i. We will write a custom essay sample on Ann Taylor or any similar topic only for you Order Now e. work related clothing to different markets. The introduction of Dan Taylor; our challenge has been positive and we feel that this division for men’s clothing would reap benefits for the company primarily because the men’s market is a growing one. Also, Dan Taylor can capitalize on Ann Taylor’s reputation of being amongst the top few brands customers pick for work related, casual yet chic clothing. Our product line will follow along the path of LOFT; catered to men instead of women. Although there are several threats the company might face, we strongly believe that the opportunities will outweigh the risks. Dan Taylor will use promotional tools that Ann Taylor never used but in terms of overall advertising, Dan Taylor will follow Ann Taylor’s path. The company’s overall goal is to improve the bottom line growth of both the divisions (Ann Taylor Dan Taylor). If successful, Ann Taylor Store Corp. will be one of the highest grossing companies in the United States. COMPANY BACKGROUND CURRENT MARKETING SITUATION Ann Taylor Stores Corp. has been one of the most popular women’s clothing company in the United States for the past few decades. Founded in 1954 by Richard Liebeskind, the company was named â€Å"Ann Taylor,† because â€Å"Ann,† was considered a very New England name and â€Å"Taylor,† evoked an image of tailored clothing. Ann Taylor has four divisions; Ann Taylor, LOFT, Ann Taylor Factory and LOFT Outlet. Ann Taylor caters to working women with classic clothing that is polished, refined and versatile. The fashions offered at Ann Taylor stores are for affluent career women. With price points between $40 (for a basic top) and $430, Ann Taylor falls in the â€Å"better,† category. LOFT was established in the late 90’s and offers more casual and relaxed fashions for relatively younger customers. Priced anywhere between $20- $90 and $200 for suits (two separates), it falls under the â€Å"upper moderate,† category. Ann Taylor Factory and the LOFT outlet are extensions of the brand (Ann Taylor and LOFT) in the outlet division. Ann Taylor Stores Corp. ’s product line (width) includes â€Å"Apparel,† that includes tops and blouses, sweaters and knits, dresses, pants, skirts, suits, jackets and coats, denim and accessories among all four divisions (based on different price points). The depth of the accessories includes shoes, jewelry, handbags, belts, scarves and shape wear. Ann Taylor has an exclusive line of Bridal wear that is an one stop shop for all wedding needs for women including wedding dresses, bridesmaids dresses, shoes and accessories at an affordable range of $38 (accessories) to $495 (wedding dress). LOFT, being the more casual between the two has an exclusive line of lounge wear ranging between $20 and $60. The extensive product line is available for Ann Taylor and LOFT in brick and mortar stores, on the internet (ecommerce) and in catalogues. Ann Taylor’s strengths lie in the fact that it caters to a strong and growing market, i. e. primarily to the working sector of people. Ann Taylor’s target market primarily comprises of ages between 30 years and 60 years to whom, the company offers a plethora of work related apparel and accessories. LOFT’s target market comprises of 18 to 34 year olds who have a wide variety of casual work related (can be used for other purposes) apparel and accessories. Although the two divisions cater to different target markets, their primary purpose is to provide to the ‘working customer. Ann Taylor’s expansion into value based divisions (LOFT and its clearance centers) has captured the value market. The pricing at LOFT is about 30% lower than its sister concept, Ann Taylor. The outlets too, have captured the market that comprises of consumers seeking deeper value over traditional pricing and stores. The corporation added more value to these â€Å"clearance cente rs,† by creating private labels for the outlet centers. All the three divisions have proven to be a success among consumers. A third strength of the company would be its marketing strategies through celebrity associations. Some of the biggest celebrities like Heidi Klum, Milla Jovovich, Rachel Bilson are the faces of the company. The brand equity of the company, i. e. the image of the company in the minds of the consumers is enhanced because of positive perceptions. To further enhance this, the company is specifically targeting different markets by using different celebrities for each type of market. For example: Christina Hendricks, known for her curves is a face of the company. Although not directly done this speaks to the relatively more curvy women, a huge upcoming market. Also, since Ann Taylor has been associated with ‘luxury products,’ its reputation has trickled down to its LOFT brand and customers have started to consider LOFT as affordably luxurious. One of the biggest weaknesses of the company (in disguise) is also a blessing for the company, i. e. its LOFT division. The LOFT brand has been growing rampantly with 506 LOFT stores as compared to 291 Ann Taylor stores in 2009. The reason for this growth has been the demand for value oriented ‘luxury,’ products offered by LOFT. When LOFT was set up in the late 90’s, it was oriented towards casual clothing. Today, with the shift towards more casual clothing even in the working environment (casual Friday), LOFT unwittingly turned into Ann Taylor’s direct competitor with a better value proposition. Ever since the economy has been in the throes of a recession, Ann Taylor’s performance like that of most other companies has spiraled downwards. Since 2008, the company has been spiraling downwards with net sales of $2. 4 billion in fiscal 2008, $2. 2 billion in fiscal 2009 and $1. You read "Ann Taylor" in category "Papers" 8 billion in fiscal 2010. The net loss went down considerably from $333,906,000 in fiscal 2009 to $18,208,000 in fiscal 2010. The company has been facing tough competition from its major competitors like White House Black Market, Chico’s, Anne Klein, Talbots, Banana Republic, J Crew and Cold Water Creek for Ann Taylor and The Gap, AK Anne Klein, New York Co. and INC International Concepts (Private Label at Macy’s), a few among others. In terms of advertising, Ann Taylor promotes it products mainly through catalogs, television and magazine ads. It uses a combination of Institutional advertising, i. e. dvertising done to promote the company’s image and Promotional advertising, i. e. advertising that highlights an item or a category of items to get an immediate response. [pic] [pic] Institutional Advertising Promotional Advertising In 2009, Ann Taylor partnered with Proctor Gamble due to the economic downturn, and handed out free samples of detergent and coupons to customers who buy machin e washable clothes. In addition, Ann Taylor created an eight-page magazine, available for free in stores that provided tips on how to keep clothes looking fresh. Of course, due to the partnership, they require Tide or Downy Total Care, which are both Proctor Gamble products, but this was one of the many successful promotional strategies implemented by Ann Taylor. In an effort to utilize maximum amounts of different media in order to integrate the customer with the promotion strategies, Ann Taylor partnered with CFDA/ Vogue fashion fund in which the selected stylists were asked to put together a full look for Ann Taylor that would suit today’s working woman. This brought out not only increased exposure but also offers a fashionable, vivacious look to the brand. MARKETING OBJECTIVES Given the current market situation, Ann Taylor should be looking to expand and conquer any new potential clientele to drive profits up. Sale trends still place the retailer amongst the top two competitors of its US Top Women’s Apparel Division, giving the brand a leadership position within its industry. Although product offerings are fairly uniform amongst such brands, very few of Ann Taylor’s direct competitors are currently in the Men’s clothes division (primarily department store private labels). Furthermore, as was once predicted of Contemporary and Young Designer fashions, Menswear is the next â€Å"white space† of the industry, offering high rates of growth and return for early entrants. This provides Ann Taylor a high incentive towards accepting the risk of being an early-mover and adding a menswear line to its current offerings. Ann Taylor’s previously existent mill and factory relationships will also conduce towards seamless integration of the production of a menswear line for select stores. Furthermore, despite harsh economic times, Ann Taylor shows clear signs of recovery, having started to post profits of $18. million in the second quarter of 2010, over $260 million to finance expansive efforts. Another trend that has been identified within a more general Apparel market is that women make up to 80% of all of all shopping for a family. This would indicate that for a large portion of the male population, it is in fact their female counterparts that are ma king the calls in regards to many purchasing decision. Large portions of these women are wives of family households as well as long-term partners. Nationally, nearly 50% percent of the entire population is comprised of married couples – a broad base for a core target audience. This buying behavior creates an untapped potential market for the Ann Taylor brand. Since women would already be in the store, this is a process of adding on to their current purchases, adding not only profit, but value to the Ann Taylor brand by having the client associate stores with convenience and multi-level shopping. This was already proven successful with strategic integration of home furnishings and accessories to select flagship stores. The target male consumer for these groups was a relatively simple process of reexamining our current demographics under a different lens. Most evidently, the targeted age group would be a similar 18-34. This age group makes up 23. 5% of the American consumer base as a whole, with over 23 million potential male customers. The ideal â€Å"Dan Taylor† is a middle classed, working male aged 18-34 either with, or thinking about a family who makes $75-99,000 a year, and is looking for workable, affordable, well-constructed clothes that speak to a tailored, New England look. Nationally, this corresponds to 12% of American households with a corresponding range of disposable income, with slight variations across regions of the country. Furthermore, in a more generic view, 78. 6% of the population consists of private wage and salary workers who would maintain the targeted aesthetic of the Dan Taylor line. Considering the harsh economic times, many higher income group clients would also be looking towards lower end options for their everyday work wear. This comprises an additional 31. 7% of the population that would be well within means to shop at Ann Taylor. With further research into specific regional demographics, initial expansion of the Dan Taylor line would be limited to the Northeast area. As will be detailed, this capitalizes on maximum saturation of target market as well as core following of brand lifestyle and traditional aesthetic. The Northeast region shows the highest rate of educated males with a bachelor’s degree or higher educational attainment at 32. 5%. This figure is well above any other regions and is a full 4 points higher than the national average at 28. 4%. The Northeast also has to the second highest percentage of private wage and salary workers at 79. 5% or workforce, only behind the Midwest at 81. 1%. This category corresponds to the key lifestyle psychographics of the Dan Taylor customer. The area also corresponds to the second highest percentage of households within the targeted $75-$99,000 income level with 12. 6% and leads in terms of households making above $75,000 dollars, at 37. 6%, a full six points above the national level. Another compelling factor in terms of income is the Northeast’s mean male yearly earnings is a full $10,000 above the national level and is by far the highest of all regions. This higher income level means this population has a greater willingness to spend from discretionary income, particularly during harder economic times. Another great value in early investment in the Northeast of the United States is the historical association of the Ann Taylor brand with the region. As previously mentioned, the brand’s name is already associated with the area. The label’s look, comprising fashionable day and work wear for the active woman is also in key target with the ambiance and feel of the Northeast region. Color stories of Ann Taylor lines are also frequently associated with this area; pastels, khakis and navy are proven a timeless classic to locals of the area. This mix of ideal target market as well as a value-conscious higher income customer that is not only accustomed, but a follower of the Ann Taylor aesthetic creates an ideal marketing position for the Dan Taylor line. If success is seen within the Northeast sector, analyzed demographics then suggest the Western region of the United States as being the best to serve, followed by the Midwest and finally the South. OPPORTUNITY AND ISSUE ANALYSIS Opportunities 1. Growing Menswear Industry Men nowadays have become more aware of their appearance, and therefore, their spending on apparels also increased. According to Data Monitor (Table 1 Figure 1- Appendix 1), from year 2004 to year 2008, the market value of the menswear market has a steady growth rate from around 3% to 5 %, its market value has also grown from $82. 6 billion in 2004 to $98. 2 billion in 2008. Data Monitor also forecasted that by 2013, the market value would grow to $118. 3 million dollars, an increase of 20. 4% since 2008. If we take a look at Table 3, our target customers who are among the age group of less than 25 years old and 25 – 34 years old, have a total of 27,919 thousand (7875 + 20,044) customers. Their added annual expenditure will be $76,413. Compared to women, men spend less on apparel. This may seem to be a discouraging data, however; it also proves that the menswear market is still catching up, and that Ann Taylor can utilize its edge of having the existing loyal female customers to expand to the menswear market. By introducing Dan Taylor in the Loft store, it is expected that our female customers would purchase menswear merchandise for their male friends and husbands. Some of the men may not like to spend too much too much time shopping around and may leave the styling job to their girlfriends or wives. This becomes a strong edge for the launch of Dan Taylor because this approach helps Loft to reach to a new group of male customers through our existing female customers. It is certain that the menswear market is still growing, and therefore Dan Taylor will seize this growing market to obtain some market share in the menswear industry for more profits in the future. By making the first move, Dan Taylor will have the first mover’s advantage. 2. Product line and Price Points The chart below includes the product lines of each of our competitors and their price points. Department private labels such as Alfani, INC and Izod have a narrow product line and a relatively lower price point. They place their focus on business clothing with items such as t-shirts, polo, shirts (casual and formal), sweaters, and trousers. However, for each assortment, they only offer a few styles. Compared to competitors, such as Gap and Express, Dan Taylor positions itself as more for the same; we provide better quality but offer the same price points. This positioning allows us to fit in the white space between low to medium priced and medium priced specialty stores. Although our quality is comparatively lower than what medium priced brands such as Kenneth Cole and J. Crew offer; our price points are much lower and therefore, Dan Taylor provides better value. In addition to the demographics qualities, we are also targeting customers that look for consistent qualities and values. Our goal is to establish a long-lasting relationship with our customers by offering great quality, details, and a wide variety of products with affordable price. We believe in values, and so do our customers. It is expected that customers from our competitors will be drawn to our store because of our promising value and quality. 3. Strong Brand Image Ann Taylor Loft has been in the women specialty retail market since 1983. Currently, we have around 900 stores in the United States, including the labels Ann Taylor, Loft, Ann Taylor Factory, as well as Loft outlet stores. Within these 900 stores, there are 509 LOFT stores because Loft has outperformed Ann Taylor by using a more moderate pricing strategy. Loft targets to a slightly younger group who has a more relaxed lifestyles at work and at home. Our customers are value-conscious and are loyal; this allows us to introduce Dan Taylor (which will have LOFT’s price points and quality) which targets to a similar group of men. Our approach is to first introduce the menswear to our existing Loft customers. It is common that women will buy gifts for their boyfriends or husbands during special occasion such as holiday seasons or birthdays. Therefore, it will be a great opportunity to launch Dan Taylor since our well-known values and quality will draw our existing customers to purchase our menswear’s’ products as gifts for their spouses. This approach allows us to reach our potential male customers and provide them exploration to our products. 4. Online Opportunities The online U. S retail market is growing tremendously in the recent years. According to industry reports by Data monitor, ‘the US online retail market grew by 16. 6% in 2008 to reach a value of $186. 7 billion. in 2013, he US online retail market is forecast to have a value of $325. 2 billion, an increase of 74. 2% since 2008†. This trend leads many of the retailers setting up their own websites, providing customers an easy access to their newest campaigns and other information related to the company. This approach helps the customers to have a better knowledge of the company. Some of these companies also set up an online store whe re customers can purchase directly online. Images, measurements and other details are shown to give customers a better visual idea of the merchandise. Today, with such busy lifestyles, people who do not have enough time to shop at the virtual store can now have the option to shop online. Therefore, Ann Taylor should keep focusing on the online sales channel to drive margins because e-commerce is the fastest growing and high margin segments which currently representing nearly a 25% of the company’s revenue base. 5. Collaborations with designer labels and international markets Today, the trend of retail stores collaborating with high-fashion brand labels is more popular than ever. Some of these examples would be HM and Lanvin, as well as Uniqlo and Jil Sander. Regardless of it the partnership being short term or long term, this approach has always been successful. Long queues are found lining up outside the store on the launch date, and most of the limited merchandises in the collaboration collections are gone in less than a few hours. This not only creates instant buzz about the company but the other customers who come to shop the designer collections might end up looking at the other merchandize as well. Aside from advertising purpose, the limited merchandise brings in some differentiation and freshness to the company and attracts a new group of customers. A further opportunity derived from these collaborations is the recognition in the international markets. While Ann Taylor High-end designer labels now mainly focus on the domestic U. S market, the collaboration with designer labels can help promoting Ann Taylor Loft and Dan Taylor throughout the world. Getting the name out to the global market will be a stepping-stone for the company to launch new stores in new markets. Threats/ Issues 1: Effects of recessionary environment will continue impacting consumers spending habits The economic condition might be one of the most serious threats for Ann Taylor. We haven’t come out of the recession yet, and consumers in the US are suffering high unemployment and lower disposable income. Consumers are reluctant to pay for anything that is not on sale or with some sort of down pricing. Rising unemployment further reduces consumers’ ability to spend, which might be a threat to Dan Taylor although the economy is slowly recovering from the recession. Rising unemployment also means less people are at work – the precise demographic of the Ann Taylor and Dan Taylor aesthetics. Increased pursuit of everyday/ lounge wear from high unemployment trends could show significant damage to Dan Taylor’s future success. 2: Increased regulations on cards issued by the retailers will affect the appeal of these cards adversely A new act called the Credit Card Accountability, Responsibility and Disclosure Act of 2009 was passed which enforces several restrictions for retailers while issuing the credit cards. Several norms that originally contributed to the rising popularity of the retailer cards, have been identified as the reasons that later left the consumer with high debt. The new set of rules will benefit the customers, but will nevertheless restrict retailers and the earlier growth in retailer credit cards. Additionally, retailers rely on offering loyalty programs through these cards. The decline in the card base will negatively impact the success of these promotions. Ann Taylor issues its own branded and co-branded charge card for its customers. This will expose the company to high risk of default, higher regulations and compliances. The new act further imposes higher restrictions and this might lead to less popularity of the cards impacting the cards business adversely. The new regulations might also make it more difficult for the company to issue new cards to the customers. 3: Rising of private label has affected the sales of national brands seriously Due to the recession, customers care now about price more than they did before. As customers became more price-oriented, large retailers filled that gap with lower priced private labels. Their close ties with factories allow these clothes to sit at a very low price point while still offering profit to the retailer. As a result, Macys, which is one of the largest department stores in the world and other companies have begun to focus on their private brands (Alfani, INC and IZOD for Macy’s, Aqua for Bloomingdales) and launched various types of clothes with reasonable prices for men and women of all ages. In addition, many discounted supermarkets such as Wal-mart and Target collaborated with designers and launched fashionable collections with reasonable prices as well. The popularities and sales of these brands increased rapidly. This might be another potential threat to the moderately priced Dan Taylor. 4: Rising apparel costs and labor costs in China are pressurizing margins Dan Taylor’s major production will be in China where the costs are estimated to inflate in the near future. This will increase costs for the company and pressurize margins. The prices of cotton, which typically comprise 40-45% of the price of a garment, were up 25% year in one year. Higher energy costs and rising labor costs in China will contribute to the increase in import cost of the apparel as well. The relative cost of manufacturing in China will almost certainly rise as the labor costs rise. Wage increases, coupled with higher costs for cotton, oil and freight will also push up prices. This cost increase is particularly troubling when taking into consideration the rise of private labels and increased competition within the industry to keep prices down. 5: A men’s brand in a women’s store might inhibit men from walking in Ann Taylor, being the feminine store it is might often prevent men from walking into the store. A large portion of men, even while shopping with their partner, prefer to wait outside or visit a different store, rather than shopping alongside the woman. This moderate level of interest shows a threat to the Dan Taylor line, however, it is also provides room for growth. By changing promotional efforts in-store, management can captivate the attention of such idle shoppers and transform their boredom into profits. MARKETING STRATEGY ACTIONS TAKEN Ann Taylor’s primary advertising strategies will be â€Å"combination advertising,† including both Institutional and Promotional advertising. The promotion strategies will be divided into two phases. Stage 1 will involve bringing the company’s name out to the public and creating loyalty from Ann Taylor’s female consumers thereby exposing their partners to the line in a passive manner. Stage 2 will be dependent upon the first stage’s success and will encompass the creation of the actual ‘Dan Taylor,’ stores and shifting shopping responsibilities from the woman to the man. Product line |Tops |Bottoms |Jackets Coats Accessories | |T shirts |Pants/ Trousers |Suit Blazers |Ties | |- Polos |- Flat front |- Suit jackets |-Boleros | |- Henley |- Pleated |- Sports blazers |-Neckties | |- Sleeveless | | |-Bow ties | | | | |-Ascots | |Sweaters |Denim | |Cufflinks | |-Vests |- Relaxed | |- Double faced | |-Crew neck |- Straight leg | |- Chain | |- Full sleeved |- Skinny | |- Snap on | |- Boat neck |- Boot cut | |Belts | |- V neck | | |- Casual | | | | |- Formal | |Shirts |Shorts | |Socks | |- Dress s hirts |- Cargo | |- Ankle length | |- Cufflink shirts |- Chino | |- Low cut | | |- Bermuda | |- Mid calf | Stage 1: At this stage, Dan Taylor’s promotional efforts will be limited to news papers, magazines, in store promotions and social media. Given the economic difficulties of the Ann Taylor stores at the moment and the high-risk nature of adding a menswear line, these forms of advertising were chosen due to their maximum exposure to both men and women. Although newspaper advertising is a slowly dying medium, it still has the maximum exposure at minimum cost. This is an efficient medium to get the â€Å"Dan Taylor,† name out there to people who read newspapers that are not fashion related. In addition, trade publications like Women’s Wear Daily and other national and local magazines in the North East Region will feature advertisements for both Ann Taylor and Dan Taylor with both male and female models. Social Media, a highly upcoming medium for advertising will be taken advantage of as well. Dan Taylor will feature on facebook and twitter. These social networks will be constantly updated with new arrivals, sales and other promotions. These are excellent tools for reaching out to a mass audience that is specifically interested in the brand. Particular focus will be placed on these tools before the launch of the first Dan Taylor line to reach a wide audience and create massive hype. By using such a medium the brand can create an interaction and communication with the fan base, sponsoring loyalty and a following before the label is even launched. To introduce line on a grand scale, the company will have a launch party for the Dan Taylor line. Social media will be heavily used to publicize and to create excitement over the brand before said opening. Much emphasis will be placed in public relations and in creating hype for the launch. One such effort will be a competition on the Dan Taylor website (which is a part of the Ann Taylor website). Links to the website will be available on the facebook and twitter pages. The competition will involve men dressing their girlfriends or wives in Ann Taylor clothing and accessories and then submitting their entries. Visitors of the website will get a chance to vote for their favorite outfit and the top three couples will win free flight tickets, hotel accommodations and be featured at the launch party of the Dan Taylor brand. At the party, the winners, along with three celebrity couples will be highlighted as the event’s main feature. Each couple will be given an exclusive look into the Dan Taylor line and the woman will be given the opportunity to style their man. At the party, both the contest winners as well as the celebrity males will be asked to walk down a runway. Outfits will later be featured in editorials in a major fashion magazine. The celebrity couples will be chosen directly from previously existent Ann Taylor spoke models including Rachel Bilson, Heidi Klum and Christina Hendricks. Fortunately, all three women have famous actors as their boyfriend or husbands, which would translate seamlessly with raising awareness of the brand in a fun, star studded manner. Once the line is in store, promotional efforts will be rampant. Campaigns will appear primarily in newspapers and magazines. Adverts will always feature both a man and a woman, posing together in some manner to suggest a relationship. Emphasis will be placed on the novelty of the line as well as on how shopping the line makes the female reader a better wife or girlfriend. Ads will play on the idea that one uses gifts to demonstrate their love, adding that now woman can shop for men – while they shop for themselves! This activity will be depicted as pleasurable and an enjoyable addition to a woman’s afternoon shopping trip. The Dan Taylor line will be available in all Ann Taylor Loft outlets within the Northeast region. As previously detailed, this region shows highest rates of employment and of brand loyalty. It will be a perfect smaller test market to see whether the line has potential for future success. Loft stores were chosen due to their history of higher sales and lower price point. By limiting distribution of the product, we will also create a greater sense of demand and urgency for the label when stage two moves distribution nationwide. Stage 2: At this point, there will already be some sort of general awareness within the market of the Dan Taylor brand. Depending on the success of the first stage we will move directly into constructing brick and mortar Dan Taylor retail outlets. These will most likely be connected to Ann Taylor stores, much in the vain of Gap’s strategy. In addition to the print campaign, television ads will start being used specifically for the Dan Taylor line. Also, Dan Taylor print campaigns will no longer always feature a both a woman and a man. Campaigns should have similar feelings as Tod’s campaigns, with very manly, dark colors and a restrained sense of humor. We want a sleek sophistication in our ads to go in line with the product. We will increase product offerings to match the larger retail space, with products no longer being exhibited simply in racks within already existent Ann Taylor Loft outlets. A large launch party will be offered for both the Ann and Dan Taylor lines. The ultimate goal is to have both men and women’s wear lines have equal stature within the corporate structure. We will have created a one-stop shop for the power couple family unit, creating a comfortable environment for both the man and the woman. Conclusion The company’s overall goal is to improve the bottom line growth of both the divisions (Ann Taylor Dan Taylor). If successful, Ann Taylor Store Corp. ill be one of the highest grossing companies in the United States. Appendix 1 [pic] [pic][pic][pic] Appendix 2: [pic][pic] [pic][pic][pic][pic] [pic][pic][pic][pic] [pic][pic][pic] Bibliography †¢ Karr, Arnol J. â€Å"Ann Taylor Update Leads Retail Rally. † Women’s Wear Daily 3 Feb. 2010,199th ed. , sec. 23: 14. Print. †¢ Moin, David. â€Å"Ann Taylor Moves to Profit in 2nd Qtr. † Women’s Wear Daily 23 Aug. 2010, 2000th ed. , sec. 39: 10. Print. †¢ Moin, David. â€Å"Ann Taylor Swings to Pofit in 4th Qtr. † Women’s Wear Daily 15 Mar. 2010, 199th ed. , sec. 56: 2. Print. †¢ Romano, Anthony M. â€Å"How Ann Taylor Put Strategic Sourcing on the Management. † Supply Chain Management Review October (2006): 32-40. Print. U. S. Censs Bureau, 2009 American Community Survey †¢ Datamonitor | the Home of Business Information. Web. 22 Nov. 2010. http://www. datamonitor. com/ †¢ EBSCOhost – Worldaâ‚ ¬Ã¢â€ž ¢s Foremost Premium Research Database Service. Web. 22 Nov. 2010. . †¢ Macy’s| Department Store, Dept Store , Department Stores, Clothing, Apparel, Accessories. Web. 22 Nov. 2010. . †¢ J. Crew – Cashmere, Sweaters, Women’s Clothing ; Dresses, Men’s Clothing, Children’s Clothing ; Kids Clothes. Web. 22 Nov. 2010. . †¢ Web. 22 Nov. 2010. . †¢ Web. 22 Nov. 2010. . †¢ Web. 22 Nov. 2010. . †¢ Web. 22 Nov. 2010. . †¢ Web. 22 Nov. 2010. . †¢ Web. 22 Nov. 2010. . †¢ Web. 22 Nov. 2010. . How to cite Ann Taylor, Papers

Check sample assignment on sustainable development in business

Question 1: Should business behave more sustainably or should they concentrate on growing profits? Is CSR a marketing tool that companies use to improve their reputation or distract attention from various unethical practices they engage in? Discuss the strengths and weaknesses of CSR as a way of encouraging business to behave more sustainably, using appropriate example. The prime objective of companies in business is to gain profit. However in recent times, companies have realized that they should focus on long term benefits and sustainable growth. CSR or Corporate Social Responsibility is one of the ways by which sustainable development can be achieved. One of the classical theories would suggest that businesses should concentrate on growing profits and the first objective of companies in any industry should be to gain profits. The new theory would suggest that companies should also look for ways to give back to society. It means that companies should look for the ways by which they can attain profit without disturbing the environment and social balance. The businesses can not have any single statement or direction that can resolve the dilemma between the profit making and sustainability. It would not be an exaggeration to say that the time has come when companies should look for a more balanced approach that can focus on both the aspects of growin g profits and sustainability. The time has come when profit making and sustainability should not be considered as two different phases of a coin. Therefore companies should focus on profit making and sustainability together. Having said that, it is also true that corporations should never leave the core function of profit making, the steps towards the sustainability should only help corporations to generate more profit. A strong debate exists between the real implications of CSR (Corporate Social Responsibility). Many experts have believed that CSR is just another marketing tool while some other believes that CSR does have real value. The harsh fact is that the CSR is one of the last things that is at the agenda of corporations. It all started as a marketing tool only. In fact corporations would not be able to survive in the industry by focusing first on CSR. It is correct that corporations carry certain social responsibility but this responsibility comes after the core business function of corporations. In the current environment of cut throat competition, it would not be incorrect to say that CSR is more of a marketing tool that is used by corporations to improve their reputation and distract attention from various unethical practices that they engage in. For example, large companies like KFC have been doing certain CSR initiatives only to ensure that people do not blame them for killing of animal s. There are various reports about the unethical practices adopted by KFC but somehow, these practices are covered under the umbrella of Corporate Social Responsibility. Coca-Cola is another brand that is reported to spend a lot on CSR activities but in the end Coca-Cola is also accused of using child labor in the developing nations such as India and China. The harsh truth is that CSR has evolved as a marketing tool that helps organization to improve their competitive position by doing something different from their competitors. As a concept, CSR is a powerful concept. CSR helps organizations to realize that profit making should not be the only goal of corporations. It is also correct that CSR encourages businesses to behave more sustainability. For example, automobile companies like Toyota and Ford have realized that pollution impact of gases emitting from their vehicles eventually pollute the surrounding that is not good for society. The sustainable development effort put by these organizations is eventually helping these organizations to grow their business. People have also appreciated the CSR activities from large corporations like Walmart and Microsoft. These large corporations have also realized that they would not be able to sustain in the long term if they do not focus on sustainable development. Eventually the objective of corporations is to improve their profit and this can happen only when end consumer is able to develop and grow in long term. The associated weaknesses of CSR as a way of encourag ing business are that the activities of CSR may require some initial investment. The corporations should be able to spend some money initially in order to derive the long term benefits. The initial expenditure does act as deterrent for corporations to involve in CSR activities. Also, large organizations can afford the initial investment or short term loss but mid-size and small scale industries can afford the sustainable development when they have to spend some amount. Question 2: How can market based instruments such as tradable carbon permits, encourage business to become more sustainable. Are they the most effective way of encouraging sustainable development or should there be other approaches? Compare and contrast market based instrument with regulatory and other approaches, using appropriate example. The sustainable development demands that organizations in both developed and developing world should work hand in hand towards sustainable development. Different corporations in developing nations have believed that it is the developed nations that are primary responsible to pollute the environment and to develop, emerging nations cannot always focus on sustainable development. To overcome these conflicts several instruments were devised such as tradable carbon points. One carbon credit is equal to one metric tonne of carbon dioxide, or in some markets, carbon dioxide equivalent gases. Carbon trading is an application of anemissions tradingapproach. Greenhouse gas emissions are capped and thenmarketsare used to allocate the emissions among the group of regulated sources. Eventually business can earn profit by selling their carbon points. Companies can earn the carbon points by involving in activities that encourage the use of green energy. This way market based instruments such as tr adable carbon permits would encourage business to become more sustainable. This way the sustainability of the business would enable to corporations to gain profit. There could be various approaches to encourage the sustainable development. One of these approaches is to encourage corporations to get involve in carbon dating. It would not be entirely correct to say that this approach is the most effective way of encouraging corporations. One of the approaches to encourage corporations is the recognition and rewards approach. In this approach, government would reward the corporations that would work towards the sustainable development. There has to be some ways through which the sustainable development is directly linked to the returns that organizations get, and then only corporations would feel encouraged and motivated to work towards sustainable development. It is recommended that government and other agencies should have other approaches also towards sustainable development. A framework should be developed through which end consumers can also realize the firms that have really worked towards sustainable development. One another approach of sus tainable development would involve all the stakeholders of the society. Under this approach all the stakeholders would join hand to work for sustainable development. The focus of this approach is that people should also realize that CSR cannot be accomplished only by corporations. The consumers and citizens and society at large should also support corporations to attain the goal of sustainable development. It is also recommended that sustainable development and CSR should not be taken as a social change. It should also be taken as the political and economic change in the system. The real sustainable development would happen only when the goals and objectives of CSR policies would include the changes in all direction including social, political and economic dimension. There also exists a strong regulatory based approach. Under this approach the government or the environmental agencies can have laws and regulations that can limit corporations for pollution emissions and can regulate c orporations to adopt green sources of energy. Both the approaches, market based instruments and regulatory instruments can help corporations to take their steps towards sustainable development. These two approaches are different and these approaches can be suited in different cases. It may not be completely feasible to compare these two approaches. However, on a high level, it can be said that market based instrument could be a better approach in most of the cases as it allows corporations to take their own decisions around sustainable development. In the regulatory approach, corporations have to work under the guidelines of government. The private corporations may not like the idea to work and operate under the government guidelines. Therefore, market based instruments could be a batter option. Moreover in market based approach, corporations are not forced upon to choose the policies and strategies and therefore corporations can obtain a balance between sustainable development and core business. For example, Walmart is interest ed to do CSR activities but it does not want the government interference. Coca-Cola has also launched certain programs to gain public trust and respect. Large corporations and MNCs have acknowledged that it is sometimes difficult to work towards CSR and sustainability when it is imposed by government.