ADMN–2052: Business Strategy

Business Simulation Strategy Summary

(5 Marks)

Student Name Ajay Aeri

1. Company Direction
Company Mission
Reference Chapter 2; pages 41-48
Describe your At Bulkorama our vision is to create awesome shopping
company’s experience for our customers by providing them accessibility to
mission and garments of all age group and gender under one roof. We will
mission also keep an eye on our price while accomplishing our goal.
statement
Our mission is to create an apparel company that provides
customers with superior quality, design and value to our partners
and customers keeping in view the environment sustainability.

Vision
Reference Chapter 2; pages 41-48
Please describe Our vision is to be the most renowned garment manufacturer and
your company’s seller on local as well as international grounds by providing first
vision class customer service and constantly upgrading our products
based on market trends.

Targets (SMART Goals)

Reference Chapter 2; pages 41-48
List at least four 1. To bring market share of the company above 5% of the total
(3) S.M.A.R.T market share on local grounds by July 31st,2023.
goals for your 2. Create and start operating an online sales networking system
business within seven days.
3. We must get at least 150 customers reviews each month.
4. Donating 2% of total profit each month a to charitable
organization.
2. Strategic Analysis
SWOT Analysis
Reference Chapter 4; pages 166-169
Perform a SWOT Strengths
Analysis based 1. Latest and modern garment manufacturing equipment
on the 2. Skilled workers
information 3. Employee retention
provided in the
simulation and
Weaknesses:
assumptions. List
1. Lack of differentiated product and less diversification of product
at least three
2. Lack of environment sustainability
items for each
3. More credit customers than cash customers

Opportunities:
1. Innovation in 3d printing
2. E-Commerce
3. Expansion to international grounds

Threats:
1. Entry of new businesses in the garment industry
2. Rapid change in consumer preferences
3. Increasing cost of raw materials

Stakeholder Mapping
Reference Topics in Global Business and Introduction to Canadian Business
courses
List all or your List all your stakeholders below (bullet points for each are
organization’s acceptable)
stakeholders. 1. Suppliers
Make sure that 2. Customers
the list is 3. Employees
exhaustive 4. Government
5. Competitors
6. Investors and shareholders
7. Creditors
8. Banking Institutions
9. Media and press
10. Taxing authorities
PESTEL-Analysis
Reference Chapter 3; pages 80-95
Conduct a Conduct a PESTEL-analysis to identify the opportunities and
PESTEL analysis threats in your market. List each item and what is the most
of key significant environmental factor for each. (1-2 bullet points or
environmental sentences for each environment)
factors
Political
1. Barriers from government authorities to import products can
result in import restrictions.
2.Incentives provided by government to expand in international
markets will motivate our business to do so.

Economic
1. Higher interest rates on bank loans and other type of loans can
make our business costs high.
2. Increase in inflation rates can raise the costs of the business.

Social
1. Rapid change in fashion trends
2. Change in income expenditure patterns

Technology
1. Adoption of new technology to manufacture clothes will raise
the training and setting cost for the business.
2. Shift towards online shopping

Environment
1. More use f transportation to deliver products lead to more
pollution
2. Excess generation of waste while manufacturing the products
and improper disposal harm the environment.

Legal
1. Making sure that our business follows set standards by the
authorities so that customer or other companies cannot sue our
company.
2. Be well informed of the labor laws and employee benefits to
make sure that we follow all the employment standards and laws.
Porter’s Competitive Forces Analysis
Reference Chapter 3; pages 96-115
Conduct a Conduct a Porter’s five forces analysis to identify the
Competitive opportunities and threats in your market. List each of the 4
Forces Analysis forces and conclude with an overall competitive rivalry. (1 to
2 sentences for each competitive force)

Competitive rivalry: There are many manufacturers and

suppliers in the clothing industry till date. Many domestic as well
as international companies or businesses exist in the clothing
industry. Therefore, the level of competition is too high in this
industry.

Threat of new entrants: As a lot of capital, market knowledge,

land, human resource and other expenditure is involved in setting
up of a clothing company, the number of entrants is limited. There
are large number of suppliers selling similar products and change
their pricing due to their brand reputation. Therefore, this industry
is difficult to jump into. Therefore, it has low threat of new
entrants.

Power of buyers: While buyers of clothing typically have little to

no direct bargaining power, they have many options for where to
shop and have little reason to stick with one retailer, giving them a
lot of indirect bargaining power. They will buy from the supplier
providing them products at lower rates. Therefore, they have high
bargaining power.

Power of suppliers: Since the majority of businesses obtain their

raw materials from sellers who offer competitive prices, suppliers
in the clothes and fashion sector typically have little impact.
Additionally, a business may decide to change dealers, making
the input cost relatively modest. Therefore, the supplier power is
less.

Threat of substitute products: For people who work in the

fashion retail sector, fortunately, there aren't many alternatives to
clothing. This force is essentially nonexistent. As a result,
businesses in the market are not concerned about the
implications of substituting their commodities. So, the threat of
substitute product is low.

.
Strategic Group Analysis
Reference Chapter 3; pages 116-119
Identify direct Conduct a strategic group analysis to identify your direct
competitors in competitors in your market. List each competitor and explain
your briefly why they are in your strategic group.
marketplace.
You can use Eleventh Floor Apparel Limited: Eleventh Floor Apparel Limited
Canadian is one of Canada's leading clothing and apparel manufacturers.
companies with Fashion designers in the Canada are dependent on them as they
similar products provide digital pattern making, computer controlled, programmed
and approaches spreading and cutting, highly skilled technicians and pattern
to your makers under one roof. As the company operates in similar
organization. industry, they are in our strategic group.

Colour Alchemist Canada: The company offers all kinds of

apparel manufacturing services. Like a true alchemist, turn
imagination into reality by turning ideas into quality clothing. They
transform your dream product to reality. It operates in many
provinces in Canada. As they function in same industry, they are
in our strategic group.

Redwood Classic Apparel: As a member of the Canadian

Aboriginal and Minority Suppliers Council (CAMSC), the company
enjoys high status. The entire process of sourcing fabrics, cutting,
sewing, dyeing, washing, screen printing, embroidery, private
labeling, packaging and shipping highlights the company's
traditional and artisanal practices. As the company provides
similar product and service, it serves as a direct competitor to us.

ABC Clothing Company: Budget-friendly promotional products

and original personalized garments are available at ABC Clothing.
It satisfies the demands of those top organizations looking for
good client happiness, great design, and high-quality products.
Therefore, it offers us a direct competition.
3. Strategy Decisions

Competitive – Business Level “Generic Strategies”

Reference Chapter 5; pages 177-214
Select one of Select one of the four generic business strategies as your
Porter’s generic main one:
competitive  Cost Leadership
strategies and  Differentiation
justify your  Focus
selection fully
 Stuck in the middle
Fully justify your choice of Porter’s generic strategy below
As the main goal and mission of our company is to provide the
products at lower prices than competitors keeping in view the
quality standards, we will adopt cost leadership as our business
strategy. As our company manufacturers the product itself, it can
lower it production costs and sell at a price lower than their
competitors.

Growth Strategies (Ansoff) – “Concentration Strategies”

Reference Chapter 8; pages 317-324
Select the growth Select one of the five Ansoff growth strategies as your main
strategy most one:
suitable for your  Market penetration
organization.  Consolidation
Fully explain and  Market Development
justify your
 Product Development
answer.
 Diversification
Which strategy do you think is most suitable for the
company? Justify your answer fully:

As Bulkorama produces existing products (clothes) as well as sell

those to the customers at reduced prices, we are following Market
Penetration as our growth strategy. Our focus is to expand in
domestic as well as international grounds by taking part of
competitors' share in the market. Our company will try to find new
customers for our clothes as well as build a stronger brand image
for the existing customers. It is relatively low risk method for the
business to grow.
REFERENCES

Cavanaugh, K. (2021, August 25). List of clothing manufacturers in Canada. Fashion

Manufacturing. https://fashion-manufacturing.com/list-of-clothing-manufacturers-in-canada/
GRADING:
The project is worth 5 marks towards your final grade. Each of the 10 items above will
be graded using the following criteria therefore totally 30 potential points:

The item is fully The item is mostly Either the item is The item is missing
answered and answered and missing answers or does not apply.
justified. The justified. The and/or justifications
answer answer or the answers do
demonstrates the demonstrates not show proper
strategic principle partial application applications of
being fully applied. of the strategic strategic principle.
principle.
3 points 2 points 1 point 0 points

See rubric for detailed feedback once graded.