BMA4000-20 The business environment

BMA4000-20 The business environment

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Introduction

This reflective performance report will discuss my strategic business decisions when solving problems in the fast fashion industry. The report is based on a case study provided through VLE, in which I played the role of a decision-maker in a fast fashion company wanting to take its product to market. This report will reflect on the approach adopted to solve the problems created by this case study, using Gibb's Reflective Cycle as a guide for analysis.

The case focuses on a private limited company manufacturing fast fashion clothes that is exposed to competitive pressures, impacts of society and the environment, and the need for sustainability practices. During this report, I reflect on my engagement with the case study working individually and collaboratively in seminar sessions. I will go through strategic choices that involve the kind of SWOT analysis and solutions designed to mitigate issues regarding market position, social responsibility, and environmental sustainability. I will use Gibb's Reflective Cycle to reflect on my feelings, evaluation, and analysis of the process undertaken in making my decisions; subsequently, I will conclude and identify an action plan. I should critically consider the processes and practices undertaken to solve problems based on my assessment of the skills deployed in business decision-making; and reflect on what I learned throughout the process. This will then give me a chance to express my reflection regarding how I have approached the problems of fast fashion and how such issues may be improved concerning future strategic decision-making (Adeani, Febriani, and Syafryadin, 2020).

1. Description (What happened?)

In the case study, I analysed a fast fashion firm that could not balance its extremely short product cycles and more cost-efficient nature with the growing demand from consumers for sustainable and ethical practices in their enterprise. Known for the quick improvement of low-cost clothes, fast fashion is also enraging things in its way being one of the most environmentally unfriendly sectors, at times classed as unsustainable industries due to very poor labour practices. The case, therefore, prompted an investigation into possible solutions that might help the company sustain its edge over competitors while addressing ethical issues proceeding from this marketing model. Being in a highly competitive and dynamic industry would mean that even without these priorities colliding, the task of producing the case would be already rather complex. In this company, the two key goals that are brought into conflict are keeping prices low and production fast while introducing sustainability initiatives into the system. As a group, it was briefed to come up with strategies that can work so the company can address the two competing priorities. The organisation of the group effort was done in line with Tuckman and Jensen's stages of group development, which are forming, storming, norming, and performing. We started with the "forming" stage where we had to get to know one another's strengths and weaknesses. Then came an understanding of the complexity of the case study (Vaida, S.E.B.A.S.T.I.A.N. and ?ERBAN, 2021). The "storming" stage was the soonest as everyone had strong opinions over whether the company should focus more on profitability rather than sustainability. In the "norming" stage, we agreed on our line of action, and aligned strategies toward incorporating sustainability without letting the company lose market position. In the "performing" stage, we were able to function efficiently and develop coherent solutions by drawing on business theories such as Porter's Five Forces and SWOT analysis in guiding our recommendations (Morrison, 2020).

2. Feelings (What were you thinking and feeling?)

I was attracted by the case study from the very beginning because it reflected real-life challenges contemporary businesses face both on the levels of sustainability and ethics. It was exciting as well as intriguing due to the complexity of the issue, as indeed, the fast fashion industry very well epitomises most of the conflicts businesses are compelled to navigate today, particularly when strategies tend to focus on profit as compared to ethical imperatives. Feeling keen to apply the business theories and models learned and Mintzberg's frameworks, and to come up with a practical and balanced solution, I entered the case. However, as the case progressed, I felt a little nervous by the end of the case, thinking about whether my depth of knowledge was adequate to present valid solutions, especially in areas such as supply chain sustainability and corporate social responsibility (Serrat and Serrat, 2021).

While the discussions were ongoing, I found myself increasingly interested in the challenges presented by the case-primarily in how to introduce sustainable business practices into an inherently unsustainable company model. I wanted to take responsibility for finding a solution that best would satisfy not only the company's immediate business needs but also set it up for long-term success in a world that is increasingly more focused on sustainability. Simultaneously, I worried that practical knowledge in the implementation of sustainability was not applied or lacked for such a practical doing, especially for the case that requires us to open and analyse the complex supply chain management in use. I was intellectually challenged; on the other hand, I did not feel that I knew whether my business knowledge was sufficient to handle the complexity of the problem. Some of the factors kept running through my mind as we weighed the short-term profitability against long-term ethical considerations (Guinot, 2020).

3. Evaluation (What was good and bad about the experience?)

The best characteristic that emerged from the case study was the group dynamics that emerged within the group throughout the same. We managed to keep our levels of cohesion at good throughout the different stages put forward by Tuckman and Jensen's model, which helped in effective cooperation among the groups. In the "performing" stage, the solution we came up with proved very useful, with insightful integration of sustainability into the business operations of the firm but without a resultant loss of profitability. We have used SWOT analysis to identify company strengths, weaknesses, opportunities, and threats. These formed the framework of our strategic recommendations. Beyond this, Porter's Five Forces told us how to look at the competitive landscape: suddenly, we realised how sustainability could be a source of competitive advantage in an industry infamous for ethical failures. But things do not go as smoothly all the time. In the "storming" phase, members of the group were equally opposed to one another in the prioritisation of the ends of the company. Some thought that it would compromise profitability to emphasise sustainability while others believed ignoring ethical conduct has bad effects on the long-term benefits of the company. It was an enormous tension that slowed down our workload. At times, the decisions we made were hasty, at least in terms of forming a marketing approach that was meant to communicate some of the sustainable initiatives that the company was taking. We could not do proper in-depth research about consumer behaviour toward sustainability in fashion, and hence the solutions that emerged from the research were superficial (Isabelle et al., 2020).

Another constraint was that our team was not always as well-informed of best practices of sustainable supply chain management. Although we could provide generic strategies such as waste reduction and environmentally friendly materials, we could not provide any specific, detailed step-by-step solutions for exactly how the organisation might achieve such changes in a practical sense

4. Analysis (What sense can you make of the situation?)

I could see what went right and what went wrong in the case study decisions made. Business theories helped set the framework around our decisions. For example, Porter's Five Forces gave a clear framework in which to view the company and the competitive pressure that it was seeing, hence helped us devise our strategy to ensure that the company would be left in a position to still maintain its market position as the company readied to shift towards more sustainable practices. Similarly, the SWOT analysis showed us which are the strengths: the brand presence efficient processes of production and areas where sustainability can become a competitive advantage. But in trying to apply detailed industry-specific practices in sustainability, we did struggle in the area concerning the company's supply chain. We could discuss general strategies for the reduction of impact but could not provide specific knowledge to advise on the detailed changes in sourcing, production and distribution processes to the company. This made our final recommendations a little less robust in terms of practical implementation (Boddy, 2019).

In strategic decision-making, marketing was the toughest area. For us to use it effectively, we had to come up with a message that would appeal to the customers and, at the same time, a way the company would always ensure its commitment to sustainability. We used elements of Mintzberg's emergent strategy theory to recommend that the firm adopt an approach for its sustainability initiatives which will be flexible and dynamic. Yet, our final marketing strategy was not enough to draw a solid conclusion (Stone et al., 2020).

5. Conclusion (What else could you have done?)

There are aspects through which I could have improved and excelled both as an individual player and as a member contributing to the team. One major aspect of improvement would be the development of a further understanding of sustainability in supply chain management. It would have allowed me to contribute more detailed, actionable steps on how the company can improve its operation in a way consistent with its targets on profitability and sustainability commitments. Additionally, it has helped strengthen the knowledge of consumer behaviour in this aspect of sustainability, improving our marketing strategy since we could build up a much more persuasive message for the campaign. More facilitation of the "storming" phase discussions would have made it possible to find a quick resolution to conflicts. Knowledge of group working theories, including Belbin's team roles, for example, would have aided me in understanding the dynamics of the group and hence improved our collaborative efforts (Bednár and Ljudvigová, 2020).

6. Action Plan (If it arose again, what would you do?)

In the future, I would try to address these issues with a proper action plan including the following steps:

Step 1: Research Sustainability Practices

Begin with proper research on specific sustainable practices for fast fashion industries focused on issues such as supply chain management, waste reduction, and ethical sourcing.

Step 2: Apply Strategic Theories

Design a flexible, evolving strategy based on Porter's Five Forces, Mintzberg's emergent strategy, and other relevant frameworks and capable of adapting to the changing consumer demands and pressures from the market (Henry, 2021).

Step 3: Long-term solutions

Suggestions for sustainability solutions, rather than just quick fixes that will only exist for a short-term period. Include measures for full-scale changes in the company's supply chain and marketing techniques.

Step 4: Develop group work

Use theories of working in a group by Tuckman and Jensen's model, as well as Belbin's team roles, to enhance group dynamics and problem-solving skills in case study analysis.

Following these steps would make it easier for me to solve complex business cases of sustainability especially those to do with strategic decision-making problems.

References

Adeani, I.S., Febriani, R.B. and Syafryadin, S., (2020). Using GIBBS’reflective cycle in making reflections of literary analysis. Indonesian EFL Journal, 6(2), pp.139-148.

Bednár, R. and Ljudvigová, I., (2020). Belbin team roles in a start-up team. In SHS Web of conferences (Vol. 83, p. 01002). EDP Sciences.

Boddy, D. (2019), Management: Using Practice and Theory to Develop Skill, 8th ed., London: Prentice Hall.

Guinot, J., (2020). Changing the economic paradigm: Towards a sustainable business model.

Henry, A., (2021). Understanding strategic management. Oxford University Press.

Isabelle, D., Horak, K., McKinnon, S. and Palumbo, C., (2020). Is Porter's Five Forces Framework Still Relevant? A study of the capital/labour intensity continuum via mining and IT industries. Technology Innovation Management Review, 10(6).

Morrison, J. (2020), The Global Business Environment: Towards Sustainability? 5th ed., Basingstoke: Palgrave MacMillan.

Serrat, O. and Serrat, O., (2021). Mintzberg’s model of managing: Random thoughts from an observation. Leading Solutions: Essays in Business Psychology, pp.157-169.

Stone, M., Aravopoulou, E., Ekinci, Y., Evans, G., Hobbs, M., Labib, A., Laughlin, P., Machtynger, J. and Machtynger, L., (2020). Artificial intelligence (AI) in strategic marketing decision-making: a research agenda. The Bottom Line, 33(2), pp.183-200.

Vaida, S.E.B.A.S.T.I.A.N. and ?ERBAN, D., (2021). Group development stages. A brief comparative analysis of various models. Studia Universitatis Babe?-Bolyai Psychologia-Paedagogia, pp.91-110.

Appendix: Case Study - Fast Fashion Company

1. SWOT Analysis

Strengths	Weaknesses
Trendy and affordable clothing.	New brand; low recognition.
Quick production cycles.	High environmental impact.
Strong demand from younger consumers.	Limited sustainability measures.

Opportunities	Threats
Growing interest in sustainable fashion.	Increasing competition (Zara, H&M, etc.).
Partnerships for eco-friendly initiatives.	Rising customer awareness of labour and environmental issues.

2. Competitors

• Zara: Known for rapid production and trendsetting.

• H&M: Affordable, with a shift towards sustainability.

• Uniqlo: High-quality basics, strong customer loyalty.

• Boohoo: Online, influencer-driven, targeting younger shoppers.

3. Customer Demographics and Psychographics

Demographics	Psychographics
Age: 18-35 years old.	Trend-driven, digitally engaged.
Gender: 65% female, 35% male.	Values affordability and style.
Location: Urban/metropolitan areas.	Socially conscious but focused on quick fashion.
Income: Moderate disposable income.	Active on social media, seeking instant gratification.

4. Promotion Strategy

1. Eco-friendly Line Launch: Promote a new sustainable clothing line to attract eco-conscious buyers.

2. Influencer Partnerships: Collaborate with social media influencers for product promotion and brand visibility.

5. Marketing Channels

Platform	Reason for Choosing
Instagram/TikTok	Highly visual, engages the younger audience with trends.
E-Commerce/Email	Direct sales, and personalised offers to loyal customers.

6. Tackling Social and Environmental Issues

• Environmental: Use recycled fabrics, optimise water and energy use, and participate in clothing recycling programs.

• Social: Ensure fair wages and safe conditions, and partner with auditors to ensure factory compliance.

7. Private Limited Company (Ltd.) Impact

Aspect	Effect on Operations
Financial Reporting	Regular submission of financial statements for compliance.
Compliance	Must follow environmental and labour laws.
Raising Capital	Can raise capital privately, maintaining control.