International expansion for DS Fashion UK LTD

International expansion for DS Fashion UK LTD schema is the determination of the basic long term goals and objectives of an enterprise, and the adoption of courses of action and the parcelling of resources for carrying out these goals (Chandler 1962)International ExpansionThis report is about a companion which is a clothes manufacture based in the north tocopherol of England in Darlington. This company which is consumeed by my friends Father and has been established for well over 15 years. Mr Sandhu was diligent by a family friend in the 1970s where he gained experience in the fit out sector, he picked up knowledge and skills on how to figure out the labour aspect of clothing manufacturing. afterward this he left this job and with his savings opened up his own clothing company in Darlington. At first the distrisolelyion take was limited so they started selling their goods through grocery store stalls. The company employed 20 people but then expanded to more(prenominal).T hey specialise in manufacturing clothing for women and children. Their main distributing channel at this time after the grocery stalls was to small independent retailers across the England and supplying Yours Clothing and recently started producing garments for Lipsy London.At the start of 2011 Mr Sandhu decided to work on a schema that ordain increase profits and to go worldwide. The plan was to think of what soil labour and materials would be cheap and the day to day running of the vocation. He had to take into consideration the amount of employees and if he was departure to buy a in the raw fixingsy or rent one. He took a many amount of trips to India to see which one would be more cost honorable for him.D S Fashions Ltd strategy is To advance unique high attribute goods, through methods which involve cost cost-efficient manufacturing , and enables us to retail our goods to honourable companies at cheap bells, honourablely and fairly which benefits all stakehold ersTo achieve these objectives outlined in the statement in a higher place the company had to stick to a veritable path, the business milieu which affects the profits of the company such(prenominal) as the material, labour, machinery and measure all was considered before a strategic plan was thought about. The clothing manufacturing industry in the UK is changing where more companies are now going abroad to set up factories because the costs are note to run and cheaper to produce garments. This means there is increased competition from competitors and the away factor needs to be considered, before the move to go international is considered. DS Fashions Ltd used this model to piddle strategic plan this is what the model looked give careObjectivesExternal factors affecting business PESTInternal factors affecting business SWOTPlan to achieve objectivesImplement PlanReview and priseTo investigate further and to get a broader picture of what issues lavatory come near a PEST a nalysis was created which assessed the Political, Economical, Social and Technological factors which could affect the away influences on the international expansion.This is a PEST analysis on the external environment and external influences that could affect the expansion to India.PoliticalWarChanges in Import dutiesVAT risesBetter relations between India and UKEconomical flashCreates new employment opportunities therefore reducing unemploymentBeneficial for the UK and Indian frugalitySocialPeople exponent not want clothes from India in the altogether trends in mould keep contribute to extended clothing lines, which can cause expansion for factoryTechnologicalThe use of the internet is well(p) because trips to India can be limited, designs can be emailed and video conference can take place from anywhere in the worldNew machines such as the Vetigraph system which enables cut patterns and makes it accurate and cost efficient as it minimises waste of fabricAfter this PEST analysi s it shows a equilibrate side of the advantages and disadvantages of the risks and opportunities to move abroad for DS Fashions Ltd, considered in the business environment externally. However even though these environmental risks present been established it is appease necessary to do a SWOT analysis on international expansion strategy that could affect the strategic plan being implemented, that is why the strategy needs to be assessed DS Fashions Ltd SWOT is illustrated below.SWOT on DS Fashions Ltd StrategyStrengthsAdvertising to a new market giant market shareAttracting new customersOffering something locals cantWeaknessesDifferent stopping pointDifferent fashion trendsCompeting with loads of others competitors in India need to establishedOpportunities garish distribution costsCheap labour outstandingr workforce with lower price which means mass worksQuality control which gives good emulous edgeThreatsBig competitors such as Primark and Matalan has a bigger market share and negotiate better deals as they mass produce garmentsDeadlines might not be met on timeOther companies setting up business in India for fashion tradeThe analysis elucidately outlines supreme and negative outcomes on the strategy but the strategy looks more undimmed for the future, moving to India would be a positive outcome. As the strategy was a way of DS Fashions Ltd to expand to India which could be more cost efficient for them. The SWOT analysis suggests by doing this they can infiltrate a new market and could take a big market share of the fashion industry. Also it suggests by expanding to India they will be able to produce bigger quantity of garments, using high quality materials and fabrics. As they will have a larger workforce they will be able to produce garments that need more labour in cropion, because they will have a bigger and more powerful workforce they will have a bigger turn around period therefore attracting more customers. whizz of the weaknesses that the SW OT picked up was the difference in culture, however it can as well be seen as strength because they could diffuse the two different cultures and create a new market, or they could also provide to the smaller pocketable Asian community deep down the bigger British western community, thereof producing garments to cater for different cultures within the UK and other potential distributors.Opening the production unit in India would mean that they would get cheaper labour therefore they would be able to invest more into the quality of the fabrics and the quality of the labour, so they would be producing garments of a more higher standard, so they may also be able to enter a higher level market within the fashion industry. Another full factor is that they will be creating more jobs in the Indian community.Michael Porter came up with a concept of a value chain this chain was made to include the functions which would give nub competences over its competitors. The links with suppliers are referred to as upstream linkages and the distributors and customers are downstream linkages. Different plaques have different value chains. Tesco will have a different value chain to Comet the electrical goods retailer. Having an analysis of the value activities helps the organisation identify where there is potential, finding this out they can change activities and advance the way they are run. The way it is analysed is not in isolation but with external linkages too such as distributors and suppliers.Primary ActivitiesInboundLogistics trading operationsOutbound LogisticsMarketing and SalesServicesEfficientlinks tosuppliersProducts.LargeShipments,massivewarehousesMass production to exploit economies of scale andexperience do to cut production costsSelection of bulk orlarge order low cost carriers.Tight controls on inventory levels micropromotion oradvertising.Productspriced togeneratelarge salesvolume minor(ip) aftersales serviceandmaintenance.As you can see above these are the primary activities of the value chain, this in relation to DS Fashions Ltd, will have the same structure. Now we will look at the promote activities.Support ActivitiesInfrastructureHuman Resource ManagementTechnology evolutionProcurementtraditional centralised managerialstyle with formal procedures and unwaveringhierarchyemphasis on cost controlIntensive schooling to emphasize costsavingencourage employees to lookfor new shipway to improve methodsEconomies of scale of RD and applied science development processinnovation try out low cost suppliers, use size inbargaining with suppliersThe Risks as well as much differentiationBuyers become better informedDilution of brand appellationSustaining perceived distinctivenessOffering more features than customers desire, especially if this is reflected in a premium priceDemand becomes more price sensitive, which limits any price premium that may be chargedOffering lower priced product-line extensions may adversely affect quality brand imageImitation and product improvement by competitors, or changes in consumer tastes, or changes in technology can all undermine a differentiation strategy closedownAfter looking at DS Fashions Ltd strategy it is quite clear that it is a very positive move forward. This international expansion has been beneficial for the company as well as the consumer and also the workers. Sticking to their ethical and environmental efficiency DS Fashions have scrapped the image of moving to India as a sweat shop and taking advantage of labour to a fair way. Everything has been taken into consideration for this international move and the benefits and rewards are big.