Police Functions Essay

I think police officers are a good help for the communities they serve. Police is necessary in each city to prevent crimes and bring peace to citizens, so they can live in a safe place and knowing that they are protected of the criminals. . The reality of policing is that the police play an extremely complex role in today’s society. This role involves many different tasks. People think that they are always fighting criminals and risking their life in bad situations but as Walker described in his article â€Å"Police and Society† (2001) â€Å"Many studies of police work document the complexity of the police role. The Police Services Study (PSS), for example, examined 26,418 calls for service to the police in three metropolitan areas. As the data in Table 1-1 indicate, only 19 percent of the calls involve crime, and only 2 percent of the total involves violent crime† they spent most of their time in patrolling the city and watching for over speed cars. Every city h as a police department for a purpose and the most important role of the police is to help maintain peace, enforce the laws of the land, protect the people from criminals, and to help ensure the safety of the citizens. Also police officers are important to the government to be protected it against society. They contribute to social control through both law enforcement and order maintenance responsibilities. There are a lot of functions that police should continue to do like prevent and control conduct widely recognized as threatening to life and property, identify problems that have the potential for becoming more serious problems, create and maintain a feeling of security in the community, promote and preserve public order, and help people who are in danger of physical harm, such as the victims of violent attack. These functions are very important to the communities because crimes are increasing day by day  and without the help of police officers there will be chaos in the society and people would not be safe. Although police officers have many different kind of functions and they need to do it, not all functions are that important. They should spend less time in answer calls that are not for criminal purposes like people calling 911 because their neighbor has loud music or bothers them, watching all day for over speed cars, with no lights or plates, and they do not have to abuse the ir power when searching for a guy that is suspicious. They should devote most of their time patrolling the city searching for suspicious people, helping people in need, and maintaining the public order. There are factors that influence the functions of some police officers like their inexperience in the field work, their fear to confront dangerous criminals and get injured, the budget of their police department, or their low salary that make them think they do not have to risk their lives and work harder. There is no doubt that we need the police because they play an important role in our society and without them we could not have freedom. Reference Walker, S. (2001). Police in America. Chapter one: Police and Society. Retrieved from http://highered.mcgraw-hill.com/sites/dl/free/007241497x/39793/samplech01.pdf

Going for the Look

In Cohen’s statement, he gives off an intellectual but also an arrogant tone. This reflects his knowledge for being a successful retailer, but also has a sexist and snobbish way of viewing marketing. Retailers look for walking billboards to upscale their product to the public. Cohen states that you need attractive people working behind the counter to bring in today’s young crowd to the stores.On one hand, retailers should be able to hire who they want so they can project their image; but they are risking discrimination against people who are not eligible to work for them. From my own experience, I have noticed attractive people working at Abercrombie and Fitch stores. It is practically the models from a catalog working in Abercrombie. Yes, it is true that these workers project an image, but for what? I honestly do not walk into these stores just because a â€Å"good-looking gal† is working behind the counter.I go into stores because the clothes, or the brand catc h my attention, not some person advertising the product. So I disagree with this part Cohen’s argument, because not everyone goes into a store just to see a â€Å"good-looking gal†. Another argument Cohen brings up is that retailers hire based on looks because it is smart and necessary. In the article â€Å"Going for the Look, but Risking Discrimination† by Steven Green gives a great example about Elizabeth Nill.She walks into Abercrombie stores and almost every time managers walk up to her and offer her a job. This proves that retailers hire only attractive people. This is discrimination because Abercrombie is only hiring white, attractive people. This leaves them vulnerable for criticism from the public. Retailers should be able to hire they want so they can project their image; but they are risking discrimination against people that are not eligible to work them. I find Cohen’s argument to be invalid.

DNRC Senrio Essay Example | Topics and Well Written Essays - 1250 words

DNRC Senrio - Essay Example Lastly, recommendations on how to avoid the threats and risks will be made so as to ensure the event is carried out successful. In organizing the Democratic Republican National Convention, review of threats from the top to the bottom is key in evaluating how resources are supposed to be distributed and the level of workforce to be distributed to combat each threat. By DRNC being positioned to take place in Miami, Florida, quite a lot in regard to preparation of the event had to be taken into account. By having Major Waren plus other divisions in charge of planning the event, he has to ensure that all is in place before the major event(Harrison, 2010). Based on his assessment of the area, Major Waren would have come up with the following threats that can affect the Democratic Republican National Convention from that which can pose the highest risk to the least. Top in the threats likely to occur in the event is the issue of a hurricane disrupting the event. Since the event is scheduled to take place in August, which is mostly known to harbor very bad hurricanes, careful assessment of the risk involved has to made in order to assess whether it will be worthwhile carrying out the event or not. Hurricanes are natural disasters that pose great risk when they occur. In such a situation, the risk of a hurricane occurring on that day can be only be found from the metrologist department some weeks before the event. Hurricanes pose threat to infrastructure and human lives and can result to huge damage(Harrison, 2010). Based on the positioning of the event, hurricanes can result in extensive damage as it can cause disruption of the airplane system, cause certain planes to crash, result in heavy traffic, cause uprooting of houses and even the venue infrastructure. Another threat likely to occur in the event that has high consequence is the event of a terrorist attack(Harrison, 2010). In having a convention that harbors

Building law and contract adminisratation. General contract law Essay

Building law and contract adminisratation. General contract law - Essay Example These terms are relating to the title of the goods, description of the goods, fitness or quality of the goods and merchantable quality of goods etc. The law monitors the contract whether the goods fulfill the necessary standards set by the Sales of Goods Act 1979 or not, with some exceptions. Issues related to breach of contract of sale are also dealt by this Act. As breaches resulting due to the implied terms where they are complied with or not or the passage of property whether payment or damages can be claimed or not. This is similar to the case of Hoeing vs Isaac (1952), where the Isaac was supposed to decorate Hoeing’s apartment at a cost of  £750 and after the completion of the work it was found that there was problem with the wardrobe and the book case costing  £55. Hoeing refused to pay the remaining  £350. But the judgment went against Hoeing as the substantial part of the contract was performed and there was only a claim for the damages. (UBC) As per the decided case, the court only allowed damages to be paid to the plaintiff and the remaining amount due was paid in full. Therefore, the plaintiff can only claim the damages and cannot stop the further payment of  £4,000 which is already due. A similar case that of Carlil vs carbolic smoke ball company was presented where the Smoke ball company had given an advertisement regarding a flu remedy known as the smoke ball and claimed that it will pay  £100 to any person who gets sick even after using their remedy. Mrs Carlill used the remedy and got sick and claimed  £100. The company refused to pay the reward but later the judgment was provided that the company was liable to pay as there was a contract based on the reliance placed on the advertisement and the performance of the said act. (Law-Essays) Similarly, the person has acted upon the directions of the owner of the dog. As per the decided case, the unilateral contract is formed only when the person acts upon the directions and there

Freedom based of the book the white tiger Essay

Freedom based of the book the white tiger - Essay Example Let the people of the country not allow any organization to which they belong, to become loose and inefficient and let them remain loyally disposed to the cause of ideal of work. But the rich class will not allow this to happen and they wish to keep the poor section of the society to remain poor for their vested interests. The rich and the powerful want the average citizen to remain docile and enmeshed in poverty and subjugation, and keep busy to solve domestic and economic problems. The poor work hard; the rich work intelligently and know the art of switching over every situation to their advantage and deny the opportunity to the oppressed to free themselves from the shackles. Reverting to the issue Balaram Halwai, who styles himself as an entrepreneur, declares, â€Å"Please understand, Your Excellency, that India is two countries in one: an India of Light, and an India of Darkness.† (12)He is pleading for the poor of India, as compared to the super rich to whom aggrandizement of wealth is the way of life. Balaram has serious complaints against the working of democracy in India. Majority of the Indians are not free in the real sense. Constitutional provisions and passing legislations in the name of the poor will not bring freedom and economic prosperity. The author cites the representative example of his village and argues, â€Å"These people were building homes for the rich, but they lived in tents covered with blue tarpaulin sheets, and partitioned into lanes by lines of sewage. It was even worse than Laxmangarh.†(222) Elections, the very process of democracy, are rigged. Balram asserts, â€Å"I am India’s most faithful voter, and I have still not seen the inside of a voting booth.†(86) He compares the process of election with darkness because, the process is not fair and many malpractices happen during the election, often with the connivance of those who are in charge of conducting the

Marketing Plan Essay Example | Topics and Well Written Essays - 750 words - 7

Marketing Plan - Essay Example In the contemporary world, it is evident that people are increasingly becoming aware of the importance of healthy products. In line with this, it is crucial for companies to ensure that they launched products that were healthy for this important segment of the population. In line with this, Rejuvenate juice seeks to meet the needs of this health-conscious client base  since the juice is manufactured using natural products. Gitman and McDaniel noted the importance of a product strategy â€Å"in choosing a brand name, packaging, colors, a warranty, and a service program† (295). It is crucial to point out that the brand name of this product is Rejuvenate, which implies that the product uplifts an individual  in an energetic way. Importantly, the ingredients for the juice will be mango, apple, pineapple, orange pulp, or a mixture of these fruits. In this case, fruits contain vitamins and proteins that provide an individual with the required energy besides the fruits being heal thy and in their natural form. In addition, other ingredients will include beta-carotene, citric acid, stabilizer, sugar, artificial flavors, and preservatives. On the other hand, the packaging and colors of the product will be attractive and take an energetic theme, which will be synonymous with the juice. In addition, the juice will come in packages of 500ml and 1l. Gitman and McDaniel noted, â€Å"A special introductory price is used to get people to try a new product in a geographic area† (295). In line with this, it is important for the company to set an introductory price that does not aim at earning profits in the initial short-term stage of  introducing the  product. In this regard, the product will be available for an introductory price of $3 for a 500ml package while a 1l package will retail at $5. In this case, the pricing seeks to have many early adopters sample the product before adjusting the price of the product after determining whether the product will

The Usefulness of Marketing for Media and Entertainment Companies such Assignment

The Usefulness of Marketing for Media and Entertainment Companies such as Disney - Assignment Example Marketing in a media and entertainment industry is a very useful tool in promoting new brand products as well as building of the overall brand’s image. There are many different forms of marketing promotions used, including  : trailers, TV commercials, print advertisements, promotional and street marketing, internal marketing, and partnership marketing. Below is provided a brief overview of each of these marketing techniques. Trailers, TV commercials and print advertisements are the core advertisements of a motion picture industry (Federal Trade Commission 2000). Trailers represent a unique form of advertising whereas the theatres show the trailers of the studions for no additional payment. These trailers are shown in the theaters either with particular feature, or with a particular feature thus reaching the studio’s target audience (Federal Trade Commission 2000). Trailers appear in the theaters, TV commercials, and Internet six months to a year before the film actually opens (Federal Trade Commission 2000). Advertising through outdoor banners, and print media such as magazines and newspapers also appear long before actual opening and enables the studios to generate greater interest in a film (Federal Trade Commission 2000). In addition to the above listed promotional activities the studios often use radio advertising to generate interest in film. Even though it is used less extensively than TV advertising, it is an integral part of many advertising campaigns (Federal Trade Commission 2000). Street marketing is also a popular way of promoting the media and entertainment products through a distribution of a variety of promotional materials, including  : "coming soon" banners, postcards, window displays, posters , flyers, locker posters, key chains, t-shirts, hats, cassette and CD samplers, "scratch and win" promotions, posters at buildings and bus stop benches, etc. (Federal Trade Commission 2000). Internet marketing is becoming more and more

Conflict in Ivory Coast of 2011 Essay Example | Topics and Well Written Essays - 3000 words

Conflict in Ivory Coast of 2011 - Essay Example This research will begin with the statement that the Ivory Coast conflict resulted from grave cleavages grounded in religion, nationality, and ethnicity. In their attempt to strengthen their monopoly upon power, politicians get caught into these differences and along the way, paved way for the outbreak of the civil war. In December 2010, a dispute of election ignited violence among the followers of the President Laurent Gbagbo and supporters of Alassane Ouattara, the opposition leader. The electoral commission’s announcement of the results that declared Ouattara as a winner of the presidency’s second voting round became the cause of the dispute. Gbagbo rejected the results with his stronghold in the country’s south and accused that Outtara’s votes were inflated as a result of rigging in the northern Ivory Coast’s opposition home base. This threw the Ivory Coast into a political deadlock. Gbagbo and Ouattara both took oath as presidents of the countr y and both appointed their own cabinets, though Gbagbo had to face the pressure from the international community to step down as the international community had accepted only Ouattara as president. Many lives were lost, a lot of property got destroyed, and hundreds of thousands of people were displaced during the course of the clashes between the supporters of the two presidents. As a result of the violence that had erupted, the country was divided into two parts; the south controlled by Gbagbo’s army and the north governed by Ouattara’s rebels.... The plantations of coffee and cocoa were run by the immigrant laborers brought first by the French colonialists into the country. To ensure their sustenance in the Ivory Coast after independence, Houphouet-Boigny enhanced the immigrant laborers’ right to live as well as work in the country. Although the policies of Houphouet-Boigny were quite progressive, yet they could not remove the inequalities between north and south. The disparity mainly arose because of the fact that most plantations of coffee and cocoa were located in the south whereas north only had a small share of plantations. Houphouet-Boigny attempted to address this issue by commencing the production of food on commercial scale in the north. Circumstances changed for the worse when the prices of coffee and cocoa dropped in the 1980s on the world markets (â€Å"Ivory Coast – Economy†). This certainly had unfavorable consequences for the economy of the Ivory Coast. Plummeting living standards and risin g petroleum prices spurred student riots and civil unrest. Vanishing job opportunities and declining income caused the young people to seek work in the informal sector but the immigrant workers had already occupied most of the best areas. This strengthened the negative feelings of the Ivorians toward the immigrants (Collier). The economic difficulties that resulted increased the differences between the immigrants and the indigenous Ivorians as well as between the southerners and the northerners. Since the northerner indigenous Ivorians had settled in the south in large numbers, conflicts between the northerners and the southerners ensued. Differences of ethnicity and religion

Case Study Example | Topics and Well Written Essays - 1000 words - 19

Case Study Example The common thing about the fixed expenditures is that they are fixed throughout the three months. Based on the above analysis, Salem Data Services is a big challenge for Salem Telephone Company. There are a number of facts that can be used to prove this assertion. One of the most visible fact is seen in Salem Data Services contribution margin income statement. The Contribution margin income statement for Salem Data Services proves that the net income is by far negative and cannot be easily turned into profits. The loss incurred through the provision of these services is far high that it cannot be turned around by simply adding or reducing customer prices. Even with the 30% increase in demand here will be minimal effect on the actual income that the company gets from these operations. The same applies to increased prices. In fact, increased prices will even make things worse because they will have lower demand as compared to what they were having at the time when this report was made. However, if they increase his prices, then they might be able to get higher per unit profit on t his service. This would not be advisable because they will o be able to raise enough money to cater for their costs. This will only imply at the end of the day they will still incur losses. If the prices are lower than they will definitely have more people demanding for their services. However, the problem assisted to lower prices is the decrease in per unit income. When the per unit income for service provision is low the company will incur losses at the end of the day. This is because the total income earned is less than the cost of producing the service. Therefore, he only thing that the company can do is trying to lower their production costs. Not all the expenses are flexible. However, the company could look at the expenses with high flexibility and adjust them

The Euro Crisis in Portugal ( European Union) Essay

The Euro Crisis in Portugal ( European Union) - Essay Example The crisis continued to spread and by the end of the year 2011, two other countries Italy and Spain were affected. By the end of October in the same year, these countries were compelled to pay absolute risk premia on the order of 500 basis points. As a result of this, the public finance structures of both the countries became vulnerable as their sustainability became subjected to risk. During the first half of the year 2012, many bonds reached their maturity date in both Italy and Spain. During this phase, there were both positive and negative possibilities – either the debt crisis could be managed in an efficient manner or further severe repercussions on the global economic structure. In the entire course of the European debt crisis, every effort was taken by the policy makers so that they could provide relief to the money market. However, most of the times it was realized that any strategies that were adopted were either too insufficient or were too late. In the year 2010, t here were many deliberations over the benefits or detriments of monetary assistance or intervention from International Monetary Fund (IMF). As a result of this no fixed solution could be found for the euro debt crisis. In July of 2011, a decision was taken to enhance assistance to the Greek sovereign with permission of involvement from the private to some extent. However, this decision was rejected by another decision made in the late October of the same year. This latter decision â€Å"required much deeper (50 percent) haircuts for private creditors, supplemented by an announced policy intended to build a firewall through major leveraging of the European Financial Stability Facility (EFSF)† (Cline & Wolff, 2012, p.v). Subsequently, in the beginning of December the famous summit took place which provided all the member countries of the European Union (EU), except the United Kingdom for its reluctance to participate in the

Life Support Essay Example for Free

Life Support Essay The issue of sustaining life by medical technology is complicated by uncertainty as to when death actually occurs. Is it when breathing ceases, the heart stops beating, or brain activity is no longer evident? Medical support can keep a body breathing after meaningful signs of human life have ceased. There are individuals who seemingly have died, only to be resuscitated within minutes of interrupted heartbeat or breathing. Some who have been so resuscitated and kept alive with life support have recovered and returned to live normal lives. Others have not. Questions arise in these instances: How long should one try to hold on to life, especially when suffering persists and the quality of life is at question? When is our appointed time to die? Although most people may think of ventilators when they hear the words life support machine, there are many other types of machines used to sustain ones life. The type of life support machine used depends on the medical condition of the patient and the reasons for the use of life support machines. Patients with life threatening illnesses may make the choice to use life support machines while they are still of sound mind and capable of making their own decisions. There are four main types of life support machines. The first is a ventilator, which forces air into the lungs of a patient who cannot breathe on her own. The second type is a pacemaker which is used for those who have irregular heartbeats, or for those who suffer from an abnormality of the blood vessels. Next, there are dialysis machines, which are most commonly used for patients who suffer from renal (kidney) failure. A ventilator works by forcing warm, oxygenated air into the lungs while removing carbon dioxide. A plastic tube is inserted through the mouth and into the trachea, and is then hooked up to the ventilator which monitors every breath of the patient while regulating the air pressure at which the patient receives the air. Pacemakers are used most frequently for those who suffer from an irregular heartbeat or rhythm. They are surgically inserted below the skin, and emit electrical impulses that remind the heart to beat normally. Dialysis machines are used for both short and long term use, sometimes as a temporary measure to maintain the patients health until they can receive a kidney transplant or to prolong and provide a quality of life for people who are not transplant candidates. Hemodialysis is often used three times a week to help cleanse the blood and remove the build-up of deadly toxins. Hemodialysis machines work by removing the patients blood, running it through the machine to cleanse it, and then pumping it back into the patient. This process happens simultaneously with the use of a shunt. Life support machines enable patients to survive for a period of time while their body is recovering from a specific illness or injury. They benefit patients who only need them for a short time as well as people who are attempting to maintain quality of life for the long term. Life support machines are also beneficial in the event that the patient is deemed brain dead. In these circumstances, the organs continue to receive oxygen-rich blood flow to keep them functioning until they can be removed for transplantation. Many believe that life support machines are used only for those who are comatose or critically ill. They are however, also used for those who have a life threatening disease or injury, such as paralysis, who are attempting to maintain a normal life. A perfect example of this is Christopher Reeve. He relied on a ventilator to breathe for him a majority of the time, and before his death, was still able to lead a productive life. Many also believe that life support systems are used only in a hospital. Again, this is not true. The use of noninvasive ventilators are becoming more popular for those who wish to live at home. Patients who receive dialysis are able to reside at home while visiting a dialysis treatment center on scheduled days.

Impact of Tariffs on U.S Trade and Economy

Impact of Tariffs on U.S Trade and Economy Abstract This paper analyzes current trade tariffs in the United States and their impact on trade and the overall economy.   It notes that the United States has, over the past three decades, engaged in more open approach to trading with trading agreements like NAFTA.   Although such agreements have had negative effects in jobs losses in certain economic sectors, it has been beneficial in growing trade among the signatories of the agreement.   The paper also notes that the United States has some of the lowest tariffs overall with trade-weighted import tariff at 2% for industrial goods which constitutes 90% of all imports.   The consequences of the liberal trade approach have been the continued increase in American trade deficit that topped $811 billion in 2017.   In spite of the growing trade deficit, the United States has remained has the largest economy and has grown robustly over the decades with the exception of considerable slowdown after the financial crisis. There are ongoing concerns as noted in regard to the trade spat with China that could lead to the imposition of tariffs and counter-tariffs potentially leading to full-scale trade war which would negatively affect the economies of both nations. Existing uncertainty also impacts investment in sectors that are geared towards exports and could lead to lower than projected economic performance.  Ã‚   Impact of Import and Export Tariffs on U.S. Trade and Economy A trade tariff is one form of trade protectionism that is employed by nations creating a barrier to trade.   There are a range of reasons including encouraging local product that prompts governments to impose trade barriers including trade tariffs.   This paper evaluates existing trade tariffs in the United States (U.S.) and their impact on the country’s trade and economy.   It utilizes practical examples of the application of the concept of trade tariffs and economic impact. Current Trade Tariffs on U. S. Imports and Exports Trade barriers are imposed for several reasons. Some of the reasons are: protecting local jobs, protecting newer industries, encouraging local production, reducing reliance on foreign suppliers, reducing payment problems, and promoting exporting (Collinson, Narula, & Rugman, 2016).   There are a range of trade barriers including: price-based barriers, quotas, and tariffs. Each of these trade barriers is applied relative to efficacy in meeting intended consequences.   There are other measures such as: international pricing (cartels like OPEC), non-tariff barriers via rules and regulations, foreign investment controls, and exchange controls (Collinson, Narula, & Rugman, 2016, 2012).   A tariff is a tax on goods that are shipped internationally (Collinson, Narula, & Rugman, 2016, 2012, p.177). It is a commonly utilized trade barrier.   It serves the purpose of anti-dumping and protecting specific industries. Tariffs that can be imposed include: import tariff, export tariff (least used), transit tariff, specific tariff, ad valorem tariff, and compound (combines specific and ad valorem tariffs) tariffs (Collinson, Narula, & Rugman, 2016, 2012).   Ad valorem and specific tariffs are the most commonly used trade tariffs.   The intention is largely to regulate import volumes.   Trade flows are impacted by: inflation, national income, government policies, and exchange rates (Madura, 2011).   Ã‚  According to United States Trade Representative [USTR] (2018), approximately 96% of all imports are industrial goods which are non-agricultural.   The country has a trade-weighted import tariff of 2% on all industrial goods (USTR, 2018).   It mostly employs either specific or ad valorem tariffs; more than 50% of all industrial goods imports enter the country duty free (USTR, 2018).   The United States has largely maintained open markets to international trade. Ad valorem tariffs are based on the percentage of imported goods value with specific tax based on number of shipped items (Collinson, Narula, & Rugman, 2016, 2012).   Industrial goods imported into the United States include: machinery, chemicals, autos, clothing and textile, leather and footwear, and petroleum among others (USTR, 2018).   A significant proportion of the goods are imported due to trade agreements.   There are multiple bilateral and multilateral agreements. The country has multiple bilateral trade agreements with countries like Korea, Peru, and Singapore.   It has multilateral trade agreements including Central America/Dominican Republic FTA (CAFTA/DR) and NAFTA.   They are designed to expand opportunities for United States workers/businesses globally and reduce tariff and non-tariff barriers.   The country is able to impose limited specific tariffs with the advantage being greater access to export markets.    According to World Bank (2018), the value of United States exports was $1.45 trillion and total value of imports was $2.25 billion in 2016.   The country exported 4,563 products to 223 countries and imported 4,558 products from 220 countries (World Bank, 2018).   Consumer goods were the largest imports followed by capital goods, intermediate goods, and raw materials. The bulk of the country’s (96%) were industrial goods (USTR, 2018).   The country’s top five export markets are: Canada, Mexico, China, Japan, and United Kingdom (World Bank, 2018).   The top five import markets are: China, Mexico, Canada, Japan, and Germany (World Bank, 2018).   Canada and Mexico are members of NAFTA along with the United States.   The economic syndicate was established with the intention of reducing trade barriers between the three nations and is currently being reviewed by of the United States. NAFTA eliminated most non-tariff barriers and gradually reduced import and export tariffs between the three countries (Komar, Uniiat, & Lutsiv, 2016).   By 2008, all trade tariffs existing between the three NAFTA members were eliminated.   In addition, agricultural exports that attracted 12% customs rate became duty free (Komar, Uniiat, & Lutsiv, 2016).   It led to massive increase in trade between the nations and boosted inter-country relationships.   There is obligation on each member to maintain the principles of the agreement with few exceptions that would allow for imposition of tariffs (Komar, Uniiat, & Lutsiv, 2016).   Canada and Mexico have since become among the three largest trading partners for United States.   China is the largest trading partner of the United States (Romei, 2018).   The size of trade relates to the $506 billion in exports to the United States (Ip, 2018). The bulk of Chinese imports including: cellular/wireless phones, portable computing equipment, and communication products that are imported duty free.   The recent move to impose tariffs on Chinese imports does not affect the top five imports (Romei, 2018).   United States imposed varying tariffs on 1,333 goods from China with China retaliating by imposing 25% specific tariffs on 106 American-made products (Romei, 2018).   In 2017, the value of Chinese exports to United States totaled $506 billion or 4% of GDP while United States exported goods worth $130 billion to China representing 0.7% of GDP (Ip, 2018).   The American tariffs on the 1,333 imports goods was about 25% for total goods valued at $50 billion are pending trade negotiation (Davis, Zumbrun, & Wei, 2018).   They come on top of previous 25% tariffs on Chinese steel imports and 10% tariffs on aluminum (Davis, Zumbrun, & Wei, 2018). United States has signaled the intention to levy further tariffs.   The administration has threatened to impose an additional $60 billion worth of tariffs (Davis, 2018). In addition, it also intends to tighten restrictions on technology transfers and acquisitions (Davis, 2018).   These measures are geared towards reducing the $375 billion trade deficit by at least $100 billion (Davis, Zumbrun, & Wei, 2018).   The United States has preferential trade arrangements with the European Union with Germany and United Kingdom being its largest trading partners in the economic alliance.   However, the current American administration has also threatened to impose tariffs on a range of European imports (Bershidsky, 2018).   The goods that United States has threatened to impose a 25% import tariff on are: steel, cars, and aluminum (Bershidsky, 2018).   European Union threatening counter-tariffs with ad valorem tariffs at 25% on cosmetics, Harley Davidson motorcycles, bourbon, and jeans (Bershidsky, 2018).   The United States has refrained from imposing import tariffs until recently. The current moves have been politically motivated, presumably to address trade imbalance. It has an effective trade-weighted import tariff of 20% with 50% of imported goods entering the country duty free (USTR, 2018).   United States has leveraged on bilateral and multilateral trade agreements largely to enable its firms and people access more markets.   The recent administration has upended previous trade policies and in addition to imposing tariffs on selected products from China in particular, and is currently renegotiating NAFTA.   The progress of the renegotiation will be evident in the next few months and potential application of tariffs. Impact of the Trade Tariffs on U. S. Trade and Economy Free trade has led to significant trade deficits with most of the largest trading partners. The more noticeable trend is the widening deficit that the United States has experienced in trading with China.   Since 1998 with the exception of 2010, the trade deficit has continued to widen to reach $375 billion in 2017 (Davis, Zumbrun, & Wei, 2018).   The United States only have a trade surplus with Africa and South and Central America with low trading volumes between them (Romei, 2018).   According to Romei (2018), the United States had a trade deficit of $811 billion in 2017 and was up $59 billion year-on-year.   China accounted for $376 billion or 46.4% of the trade deficit (Romei, 2018).   Pierce & Schott (2016) noted that reducing of trade tariffs between United States and China after the latter’s ascension to WTO led to significant reduction in manufacturing employment.  Ã‚   The implication is that China has greater access to the American market. Industries exposed to changes following the elimination of tariffs shifted towards more Chinese imports with gradual shift towards less labor-intensive production (Pierce & Schott, 2016).   There was accelerated mechanization and automation of production.   A similar pattern was not experienced with policy stability with the European Union.   Thus, proliferation of free trade agreements has had varying effects on depending on particular trading relationships.   Cherkashin et al., (2015) noted that trade preferences including reduction of tariffs offered by one country had positive spillover effects to others in reference to trade between the United States and Bangladesh.   They noted that counterfactual agreements promoted exports of intermediate goods especially when applied at later stages of production.   In the case of trade with Bangladesh, there was the strengthening of production capabilities of the country.   China has had significant advantage in the size and cost of labor impacting manufacturing in the United States. Trade barriers like tariffs and quotas are additive and increase the median price by up to 14% according to Irarrazabal, Moxnes, & Opromolla (2015).   They noted that â€Å"an additive import tariffs reduces welfare and trade by more than an equal-yield multiplicative tariff† (Irarrazabal, Moxnes, & Opromolla, 2015).   Tariff changes impacts how industries operates. American firms took advantage of cheaper production costs in China to increase imports at lower costs.   In China, the reduction in import tariffs following its entry to the WTO changed the structure and organization of ordinary exports and processing trade (Brandt & Morrow, 2017).   It has been a contributing factor in the ballooning trade deficit between United States and China.   Cut in input tariffs increased Chinese content in exports (Brandt & Morrow, 2017).   There was the realization that the country could not only produce intermediate goods but finished goods as well. Some firms produce intermediate products in certain markets and then re-export them for finishing (Manova & Yu, 2016; Bai, Krishna, & Ma, 2017; Jà ¤kel & Smolka, 2017).   Increasing importance of factors of production influenced international trade.   Factor abundance from free trade policies and factor prices change via policies such as trade tariffs influence trade structure in different countries (Jà ¤kel & Smolka, 2017). Thus, the impact varies from country to country.   Economic policies have significant economic impact, such as fast growth of South Korea through reduction in trade tariffs and bilateral FTA with the United States (Connolly & Yi, 2015).   Trade policy uncertainty impacts investment even in low tariffs trade regimes (Handley, Kyle, & Limà £o, 2015).   Posturing among countries during negotiation creates such uncertainties. The current trade squabble between the United States and China is one such example. The posturing between United States and China as well as other trading partners threatens to reduce investment in the economy.   Ã‚  Handley, Kyle, & Limà £o (2015) noted that the level of export investment during periods of uncertainty was lower. Free trade agreements have had positive impact from an overall perspective in promoting trade (Cooper, 2014).   The influence of having bilateral and multilateral FTAs is that it creates certainty that promotes investment.   In the United States, there has been concern about the impact of FTAs on employment. According to CoÅŸar, Guner & Tybout (2016)   the trade-off in regard to open economies is higher national income and higher unemployment.   Higher unemployment is countered by labor market reforms reducing aggregate job turnover (Guner & Tybout, 2016).   Despite losing jobs in certain industries, the United States has gained in overall employment boost. In analyzing the Brazilian economy, Dix-Carneiro & Kovak (2017) noted that regions that had significant cuts in trade tariffs experienced declines in formal employment and lower earnings.   Liberalization is generally positive from a national perspective but adversely affects certain areas relying specific commodities.   It informs the need for countries to have the ability to impose specific tariffs.   The United States has applied such tariffs to protect the steel industry.   Therefore, there are counter-effects that are specific to different regions depending on the structure of trade relationship.   Trade liberalization has also been positive for enhancing corporate social responsibility (Flammer, 2014).    The United States having liberalized its economy with few import tariffs has experienced significant increase in trading deficits with major trading partners. Even with the ballooning trade deficit with China, it has greater leverage (Ip, 2018).   The driving factor with the increased trade deficit that United States has experienced with China is driven by American consumers.   However, the comparative size of the imports relative to each country’s GDP favors United States at 0.7% compared to China’s 4% (Ip, 2018).   In the event of imposition of widespread trade tariffs, China is likely to be impacted more.   The current situation creates uncertainty for both countries in the industries that have been targeted. There are worries notably in the automotive industry about NAFTA renegotiation and trade issues with China. The negative impact of trade tariffs is that they increase the cost of goods which directly impacts the consumers.   The level of trade imbalance that has been created by liberalization of trade has been significant in the context of the trade between United States and China.   The country has trade deficits with close trading partners in NAFTA due to factors of production.   It has created political concerns about trade fairness and potential negative economic impact.   Mexico is a cheaper production alternative to American automakers which has been the bone of contention in the renegotiation of NAFTA.   The current standoff between United States and China is likely to persist.   China has indicated that it will only make the tariffs effective in circumstances where the United States does the same (Romei, 2018).   Therefore, the measured approach to the trade now could simmer for some time prior to any settlement negotiations.   China is waiting for the signal from United States prior to actualizing the tariffs creating uncertainty.   There are existing discrepancies in the trade deficit with the European Union due to skewed bilateral agreements (Bershidsky, 2018).   The reality is that the trade deficit could slow down due to imposition of tariffs. There could beneficial negotiations that eliminate the tariffs.  Ã‚  Ã‚  Ã‚  Ã‚   Conclusion The United States has accumulated significant trade deficits with its largest trading partners.   The deficit has been increasing but has not negatively impacted economic growth.   The threat of trade tariffs could upend relationships, creating uncertainty and impacting global value chains.   In the end, the United States remains as the most important consumer markets.   The purposed tariffs by the U.S. and from the U.S will have a huge effect on the economy of the United States and China but also the rest of the globe. References Bai, X., Krishna, K., & Ma, H. (2017). How You Export Matters: Export Mode, Learning, and Productivity in China. Journal of International Economics, 104, pp. 122 – 137. Bershidsky, L. (2018). The Effects of Tariffs and Counter-Tariffs would be smaller than the Bilateral Discrepancies in EU – U.S. Trade Statistics. Retrieved 24 April 2018 from https://www.bloomberg.com/view/articles/2018-03-06/trump-s-trade-war-ignores-basic-eu-us-trade-statistics Brandt, L., & Morrow, P. M. (2017). Tariffs and the Organization of Trade in China. Journal of International Economics, 104, pp. 85 – 103. Cherkashin, I., Demidova, S., Kee, H. L., & Krishna, K. (2015). Firm Heterogeneity and Costly Trade: A New Estimation Strategy and Policy Experiments. Journal of International Economics, 96 (1), pp. 18 – 36. Collinson, S., Narula, R., & Rugman, A. M. (2016). International Business (7th Ed.). Harlow, UK: Pearson Education Limited. Connolly, M., & Yi, K-M. (2015). How Much of South Koreas Growth Miracle Can Be Explained by Trade Policy? American Economic Journal: Macroeconomics, 7 (4), pp. 188 – 221. Cooper, W. H. (2014). Free Trade Agreements: Impact on U.S. Trade and Implications for U.S. Trade Policy. Current Politics and Economics of the United States, 16 (3), pp. 425 – 445. CoÅŸar, A. K., Guner, N., & Tybout, J. (2016). Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy. American Economic Review, 106 (3), pp. 625 – 663. Davis, B., Zumbrun, J., & Wei, L. (2018). U.S. Announces Tariffs on $50 Billion of China Imports. Retrieved 24 April 2018 from https://www.wsj.com/articles/u-s-announces-tariffs-on-50-billion-of-china-imports-1522792030 Dix-Carneiro, R., & Kovak, B. K. (2017). Trade Liberalization and Regional Dynamics. American Economic Review, 107 (10), pp. 2908 – 2946. Flammer, C. (2014). Does Product Market Competition Foster Corporate Social Responsibility? Evidence from Trade Liberalization. Strategic Management Journal, 36 (10), pp. 1469 – 1485. Handley, K., & Limà £o, N. (2015). Trade and Investment under Policy Uncertainty: Theory and Firm Evidence. American Economic Journal: Economic Policy, 7 (4), pp. 189 – 222.   Ip, G. (2018). Leverage Will Determine if China or the U.S. Come Out on Top in Trade Conflict. Retrieved 24 April 2018 from https://blogs.wsj.com/economics/2018/04/05/leverage-will-determine-if-china-or-the-u-s-come-out-on-top-in-trade-conflict/ Irarrazabal, A., Moxnes, A., & Opromolla, L. D. (2015). The Tip of the Iceberg: A Quantitative Framework for Estimating Trade Costs. Review of Economics and Statistics, 97 (4), pp. 777 – 792. Jà ¤kel, I. C., & Smolka, M. (2017). Trade Policy Preferences and Factor Abundance. Journal of International Economics, 106, pp. 1 – 19. Komar, N., Uniiat, A., & Lutsiv, R. (2016). Efficiency of the North American Free Trade Zone. Journal of European Economy, 15 (3), pp. 280 – 292. Madura, J. (2018). International Financial Management (13th Ed.). Mason, OH: South-Western Cengage Learning. Manova, K., & Yu, Z. (2016). How Firms Export: Processing vs. Ordinary Trade with Financial Frictions. Journal of International Economics, 100, pp. 120 – 137. Pierce, J. R., & Schott, P. K. (2016). The Surprisingly Swift Decline of US Manufacturing Employment. American Economic Review, 106 (7), pp. 1632 – 1662. Romei, V. (2018, April 5). US – China Trade Tariffs in Charts. Retrieved 23 April 2018 from https://www.ft.com/content/e2848308-3804-11e8-8eee-e06bde01c544 United States Trade Representative (2018). Industrial Goods. Retrieved 23 April 2018 from https://ustr.gov/issue-areas/industry-manufacturing/industrial-tariffs World Bank. (2018). United States Trade at a Glance: Most Recent Values. Retrieved 23 April 2018 from https://wits.worldbank.org/CountrySnapshot/en/USA/textview

Strategic Management At UNIQLO

Strategic Management At UNIQLO Today, UNIQLO is described as the apparel giant Gap, Inc.s counterpart based on the 4, 000% share price increase, making UNIQLO as Japans third largest clothing retailer. However, it is not always victory for UNIQLO; the subsidiary also has its own share of downturns especially on its international expansion. For instance, expansion programmes in the United Kingdom (UK) saw a tumultuous stumble in profits, forcing Fast Retailing to shut down 16 of the 21 UNIQLO stores opened, because of competition. Most recently, three UNIQLO stores in New Jersey were also closed because of economic slumps. Despite these facts, UNIQLO maintains the spirit and still believed that the brand has only but way forward. How UNIQLO will going to do such is central to this paper, focusing on the companys strategic management. External, industry and competitor analysis as well as the internal environment will be addressed. Political factors have direct impact on business conducts and operations. Decisions made by the affects the decision-making of retailers and could come in the form of policy or legislation. In Hong Kong, the one country, two systems is the prevalent governance philosophy which endows the special administrative region with a high degree of autonomy and its capitalist economic system. Within a capitalistic and free market-oriented economy, retail companies make the majority of microeconomic decisions but they have to conform to specific agreements. Mainland and HK Closer Partnership Economic Arrangement (CEPA) and the US-China Textile Memorandum of Understanding are two examples of this. The former provides UNIQLO with a tariff-free treatment, stating that products which have no existing CEPA rules of origin will enjoy tariff-free treatment upon applications by local manufacturers. The latter could provide UNIQLO with an opportunity for an annual growth of 8-17% in 21 categories of Chi nese textiles and clothing exports to the US. Labor and customary regulations as well as code of conducts are also complied into including China Social Compliance 9000 and US and EU quotas (RSCA 2006; Doshi 2006). Economic Analysis Domestically and globally, businesses are also being affected by economic factors whereby a strong economy indicates positive results and weak economy signifies the opposite, affecting both businesses and consumers. Hong Kongs gross domestic product is estimated at US$206.7bn with the service sector that contributes 90% of the total GDP. The region is also named as the worlds eleventh largest trading entity. Almost 50% of the total population is employed full-time and the unemployment rate has a continuous average decline by 4.1%, making disposition of income a possibility, a lower cost of living that is (Monthly Digest 2008). Spending is generally devoted for food, housing, healthcare, transportation, amusement, services and apparel. People nowadays are very particular with investing in quality clothing thereby resume spending with premium apparel finds (Doshi 2006). Realising this, the price and quality characteristics of UNIQLO has a strategic fit; UNIQLO makes people look fashion able and confident in world-class clothes at a reasonable price through the company-wide integration of the Specialty Store Retailer of Private Label Apparel (SPA) model, a low-cost but effective operation model. Social Analysis Demography or the population characteristics may determine buying patterns and that understanding demographic changes within a particular region or place facilitates determining whether products and services would appeal to customers as well as the number of potential customers (Barney and Hesterly 2006, p. 35). Hong Kong has a total of 6, 985, 300 population based on 2008 estimate and is continuously growing due to immigrant influx from Mainland. According to Doshi, people in HK and elsewhere have a growing interest in private labels. Consumers aspired for having private levels on everyday garments. Casual wear from HK which is known for good design and quality has a positive image on global consumers. Nevertheless, international brands are concentrated in high-end consumers while domestic brands are for low-end consumers (Doshi, 2006). In taking advantage of the wealth of the demography, UNIQLO makes effort on providing high-quality merchandise and generating values to the society by taxes. Further, UNIQLO is a company that is committed in creating positive reputation as manifested in its vision and mission, styles of management, ways of doing business and requirements to employees. Technological Analysis Technological innovations are a priority for the apparel retailing industry but it will remain as labor intensive as it is today. Boosting the industrys productivity, increased in automation has been the recent trend but it is limited on specific functions, to which mostly require human intervention such as sewing and making patterns. Although there are computerised sewing machines that increase the productivity and reduce training time. Further, the uses of computer system software intended for the industry will be on making rough sketches, printing detailed designs and storing of information for easy retrieval. The customer orientation of UNIQLO was basically construed from its website in which customers can give feedbacks by email and discussion board. Hong Productivity Council made a report disclosing that the apparel industry could make sense of information technology (IT) if utilise for order processing, costing analysis, order tracking, material management, reporting and conne ctivity (2004). Industry Analysis Porters Five Forces Analysis A) Threat of Entry Barney and Hesterly (2006, p. 43) point out that new entrants are the firms which have either recently begun operations or those that threaten to begin operations within an industry soon. Notably, the apparel industry is a buyer-driven industry where producers are considering buyers decision-making especially when brand names enter the picture. These buyer-centric industries have low barriers to entry mainly because of intense competition. Utilising brands as a market power source; however, this is a challenge for every clothing company. In the clothing business, mass customisation has seen to be the most effective strategy. Putting strategises into action remains to be in resilience today (Culpan 2002). Therefore, the focus must be on minimising the costs without sacrificing quality and to do this, managerial know how is a must in order to understand interactions with suppliers and consumers, to facilitate creativity and innovation and to maintain mobility in adapting to new market demands (Kincade, Regan and Gibson 2007). Building brand awareness and consumer loyalty is a costly endeavor since it involves advertising needed not only to promote the brand but also on sustaining awareness and loyalty. Strengthening brand names also requires that there are quick response programs to increase revenues and manage risks. One of UNIQLOs major resources is its brand name, which is now synonymous with comfortable, high quality and cheap clothing merchandises. Although brand awareness outside the home country is a challenge, it is of intangible value to UNIQLO as a business asset. Brands are valuable and rare and reputable brands are acquired through the impressions one has of the company, and its products or services. Since a brand name is built overtime it becomes costly to imitate thereby providing a sustainable competitive advantage in the apparel industry (Groucutt, Lydley and Forsyth 2004, p. 285). B) Threat of Rivalry Either in home or host countries, apparels, accessories and merchandise will always have a competitor which usually fluctuates in size. The modern market trends for the apparel industry are globalisation and intensified competition, increasing price and lower profit margin pressures, small quantity with high complexity orders, shorter lead times, multiple location operation, changing customer requirements and liberalisation on textile and clothing quota that creates new market dynamics. Being responsive to these market trends shifts the focus of the apparel industry for more extensive product development and improvements at the least possible cost. Such condition forces companies to divert on product differentiation because of high switching cost. In an industry where products are deemed to be equal, the key sources of differentiation are brand image, reputation and prior existence (Byoungho 2004b). For UNIQLO, the products themselves are an important source of competitive edge. UNIQ LO strives at developing products of high quality, in various collections to enable the company to reach the highest possible number of customers. As such, the rivals would be endangered when it comes to introducing innovative products. UNIQLO is positioned in the fashion capitals of the world for the purpose of taking advantage of the new information about fashion trends. UNIQLOs ability to quickly adapt to trends and new markets has helped them develop product differentiation, something that is key to the companys success in the apparel industry. According to Tokle (1990), product differentiation is what separates the top competitors from the rest, but it something that is not costly to imitate. This is why their product differentiation is only a temporary competitive advantage. Competitive advantage could be achieved once the organisation learns to manage its capabilities that the end consumers could appreciate and competitors would find difficulties imitating (Porter 1985; Roney 2004). C) Threat of Substitutes Casual wear is very particular with loose-fit, comfortable and relaxed fit. Athletic or active wear was perceived to be the closest substitute to casual wear as manifested by the booming athletic wear industry. Typically worn as casual fashion clothing, active attires could provide deterrence in the industry. Moreover, the blurring demarcation on the casual clothing family could be also seen as an opportunity for substitutes. Specialised stores offer semi-casual, smart casual and business casual lines. Semi-casual clothes are less presentational than informal but are not as loose as casual dresses. Smart casual purports conservative looks but with harmony on colors, fabrics, shoes and accessories. Business casual, on the other hand, varies in definition but the common element is the collar. Realising this, the bottomline now is the price. Moreover, based on the SPA business model, all the necessary functions at UNIQLO falls under a single umbrella especially the inbound logistics and the production. UNIQLO is an example of a cut-make-trim company in which in which the company purchase the fabric and retain ownership of the raw materials and work-in-process, and so making it hard for rivals to imitate or produce substitutes for UNQILO brands. D) Threat of Suppliers The prices and availability of commonly used fabrics such as cotton, blends, synthetics and wools might fluctuate significantly due to its dependence on demand, crop yields, weather, supply conditions, transportation costs, government regulations and economic condition among others (Byoungho 2004a). Quota is the major factor that affects the demand and supply of textile and fabrics. Even though the sale of raw materials is standardised, independent contractors, raw material suppliers, importers and apparel manufacturing firms could not isolate themselves from such scenario because of the prospective unsteadiness in the supply chain (Chetty 1999). As well, because of forward vertical integration, coupled with the low barrier to entry, suppliers could easily become rivals. In becoming threat of entry, suppliers could be also become a competitor to already established apparel manufacturers. In addition, contractors is also one of the threats when the demand of the labor increases, it wi ll cause labor costs price inflation. Laszlo (2008) stress that there are five main parts of the apparel value chain including raw material supply, provision of components; production networks; export channels and marketing networks at the retail level. Through the process, UNIQLO has an ownership on production and thereby a complete control on the supplies procurement. UNIQLO insources its production and handles the majority of the operational details. Sourcing is a go-to in the apparel industry but it is not rare although it can add value to UNIQLO. E) Threat of Buyers Reaching more and diverse consuming group, the apparel industry is both a stable and unstable industry. Stable because quality price and quality products are the main element and unstable because there are many factors that affect both price and quality. In the point of consumption, for instance, there are middle men such as the retail stores that offer an array of brands. In purchasing manufactured apparel, retail stores could have influence on making significant requirements and demands on their purchase, affecting prices. Though quality is inherent, prices would not be reasonable at all, and alternative clothing is readily available. This explains why apparel manufacturing companies are setting up their own stand along stores which will cater to their own produce. Important is that apparel stores must not fall dependent on s specific class of customer. Buyers are increasingly appearing to prefer above standard apparel with a much lower cost, making apparel less differentiated. Whe n selling directly to consumers, buyers would incur a significant portion of their dispensable cash. Same goes with retail store, they purchase apparel at the least possible final cost, but adds up to prices of apparel. UNIQLO is involve in selling to the customers through specialty store marketing, with a minimalist strategy of pile em high, sell em cheap concept that is. In addition, the unbranded fashion or the no-logo concept was perceived to be the main reasons for peoples warm attention (Williamson 2007; Parrish, Cassill and Oxenham 2006). Competitor Analysis Local Competitors 1) Bossini There are three competitors for UNIQLO: Bossini, Giordano and Muji. Bossini International Holdings Limited is an apparel brand owner, retailer and franchiser nestled in Hong Kong. From its onset in 1987, Bossini continued to grow both domestically and internationally. Today, the global distribution network is comprised of 551 directly managed and franchised outlets in Mainland, 322 export franchised outlets, 178 directly managed outlets in Hong Kong, Taiwan, Singapore and Malaysia and 1, 051 outlets in 20 countries. Taking pride on its Bossini brand that is comfortable, easy to mix-and-match, colorful and energetic like the Family-Fit brand, Bossini was able to cater to various consumer requirements in a value for money fashion (Bossini Annual Report 2006/2007). The strength of the brand and the people was drawn from the seven practices: face reality, keep it simple, act with the speed of light, set stretch goals, drive quality, create and sustain a learning organisation and keep the A, nurture the B and discard the C. Through this set of practices, Bossini puts emphasis on quality, efficiency and profitability as a source of competitive edge. The company is also continuously building brand awareness by means of innovative cross-regional marketing activities. In enhancing its supply chain, Bossini shorten the product cycle from design to store and will continue to build string ties with them in a proactive manner. Building up an IT system is a strategy meant to drive future growth and profitability. Though the company deals with closure of unsuccessful outlets whenever necessary to divert their attention to areas which needs a closer concentration and with participating in broad campaigns and dual-branding to promote the products and to expa nd market reach, Bossini is more focused on its four core markets. 2) Giordano Established in 1981, Giordano is one among the popular and established casual apparel retailer in Asia Pacific Region which employs about 11, 000 staff with over 1, 895 shops operating in 30 territories worldwide. From its restructuring from 1986, the company prepared for international expansion, which was made possible by the initial success in Hong Kong, Mainland and neighboring countries such as Taiwan and Singapore. Known as the most successful homegrown retail stores, Giordano is a pioneering company that participated in drafting of code of practice in the retailing scene and introduced innovations such as the total shopping experience where customers are greeted individually in the doorstops and bade goodbye unto when leaving the store. Envisioning itself in making people feel good while looking great, the companys main strategy is its For the People philosophy wherein quality, knowledge, innovation, service and simplicity are at the core. As an apparel of choice, Giordano is also committed in providing simplicity of design, quality workmanship, attentive customer service and value-for-money, allowing the company to strongly build its own loyal following (Giordano 2008). Though the four brands Giordano Ladies, Giordano Concepts, Giordano and Giordano Junior are constantly profitable, the weakness is that Giordano has a limited range of products and that consumers may grew tired of the existing concepts. 3) Muji Ryohin Keikaku, better known as Muji, is an outgrowth from The Seiyu, Ltd. In becoming a separate brand, Muji develops range of apparel, household goods and food that takes pride on being functional, simple and of high quality. Literally means no brand, the over 700 Muji products observes the philosophy of simplicity. Primarily purporting an individualistic and diversified lifestyle, Muji follows three processes that is said to be the reason for proving good quality products at lower prices. These are selection of materials, streamlining processes and simplification of packaging. The companys emphasis on preventing materials wastage and improvement of essential product quality as well as time and labor optimisation are the key in achieving operational effectiveness and efficiency. The selection of materials is a very important stage for Muji where suitable raw materials are the main concern. Bulk buying is a strategy wherein quality is the indispensable criterion, underpinning the possibility of producing high quality, low prices products. Thereby, the weakness is on changes in demand and supply of raw materials. Standards at manufacturing stages are also under close scrutiny in order to eliminate waste and reduce cost. When it comes to packaging, Muji sticks to the simplicity philosophy, bearing only product related information and the price tag (Ryohin Keikaku Co., Ltd.). International Competitors 4) Gap Gap, Inc. and United Colors of Benetton are the two international competitors for UNIQLO. Gap, Inc. has been officially incorporated in 1988 as a global specialty and outlet store which offers casual apparel, accessories and personal care products. Gap, Banana Republic, Old Navy and Piperlime are the four primary brands. As a way of building the value of the brands, Gap is very fastidious with brand development, ensuring that value will be integrated from product design to distribution onto marketing, merchandising and shopping environments. The strong point of Gap is its continuous commitment in enhancing the brand; in fact, Gap has an intensive portfolio of brands covering classically styled, high quality, casual apparel at moderate prices for virtually all ages. However, the weakness is on inventory turnover. Emphasising style, quality and good value, Gap embraces a shopper friendly environment where store facades vary depending on selling season, size and location of the store. J ust like UNIQLO, Gap is never threatened of closing under-performing stores and expanding and remodeling existing stores (Gap Annual Report 2006). 5) Benetton A global clothing brand which is based in Treviso, Italy, the name Benetton originated from the Benetton family who founded the company in 1965. Now in existence in over 120 countries, Benetton started with only 5 stores in 1979 which were bounded to reach 800 stores today. The 5, 500 network of contemporary stores worldwide are the reason for generating a total turnover of 2 billion euro. Fashion apparel is the core business wherein quality, style and passion through the brands such as United Color of Benetton, Sisley, Playlife and Killer Loop are the main concerns. Mixing energy, colors and practicality, Benetton offers a portfolio of products for men, women and kids. The strength is in its innovation and IT integration in producing 160 million garments annually. At Benetton, superior product quality is achieved through committing every stage of the production process with innovation and creativity. The weakness is on the tendency for incoherent diversification (Benetton website 20 08). Common to all the competitors of UNIQLO, either domestic or international, is the international expansion strategy known as the judo strategy or the conscious decision to move rapidly into new markets where there is uncontested ground.(Hilburt-Davis 2002), and providing the best value of money based on distinct brands. Product differentiation, low cost production and gateway market penetration like UK and the Mainland are other strategies that these competitors pursue, in the same way like UNQILO is doing. It is important that brands must conform to the needs of the customers of varying age structures and preferences and producing brands where value was mounted from the very first step. Quality and customer service are the main concerns, followed by style or design and functionality. Brand development and building brand awareness as well as the overall look of the establishment are also the priorities. Common also to Bossini and Gap is the closure of unproductive stores/outlets while Benetton takes pride in its IT integration in production. Bossini also engages in dual-branding in terms of marketing. Since it is also common to all of these competitors to conceptualised product portfolio, the weaknesses are on incoherence in diversifying the products, apart from inventory turnover and focusing on core markets. Typically, when these scenarios happen production will be affected and it would not be advisable for those companies which are into bulk buying especially that the styles are immediately paced out. For UNIQLO, the weaknesses of the domestic and global competitors could be reaped off as new strategies and the strengths could be manipulated as new advantages. The UNIQLO could be upgraded in opening flagships stores in every gateway market so as to equally diversify brands and gateway locations, catering to all forms of demographics. For UNIQLO, product mix and shopping spree would be plausible especially if it will come in bolder shades, with better quality and cheaper prices, but are manufactured based on forecasted demands. To take advantage of the opportunities that competitors impose, UNIQLO must also open its horizon into new product trends including the silver market and the plus-size market as part of the brand concepts. Although all of the competing companies including UNQILO are into casual, everyday wear, what will set UNQILO apart from them is the potential of easy care clothing where fabrics are very fluid and/or wrinkle free. Internal Analysis SWOT Analysis 1) Strengths UNIQLO was deemed successful because of its commitment in divergence which supports the individuality of each family member as well as those with fashion-forward and edgy people. These products are of expected high quality because of the effective global materials procurement. Given this, UNIQLOs products are designed parallel with the customer requirements and worldwide markets trends. Voice of the Consumer (VOC) is one of the key in building the most effective brands. For UNIQLO, however, this is not enough, it should be joined with direct engagement in value chain process and doing it through a low-cost, quality-driven manner. In the post production stage, it is also important for UNQILO to obtain effective distribution management and inventory control. UNIQLO is an expert in store development thereby efficient store operation in addition. 2) Weaknesses Japan and Fast Retailing are devoted in simple, functional clothing with minimalist clothing details rather than cutting edge, extravagant clothing. This is the mark of UNIQLO, but could also be its major weakness in penetrating fashion-oriented places such as London, Paris and New York whereby fashion element of UNIQLO products are very limited. Another weakness is that UNIQLO belongs to a multi-layer distribution structured industry; distribution digestibility is hard, leading to clogging in distribution inventory. UNIQLO is also originally designed for low-end consumers and that they will face a head-to-head competition with all kinds of market such as high end, high street, ethical consumers and cut-price shoppers when operating abroad. In some places, profitability is largely determined by the opportunities of retail season like back-to-school and holidays. In both cases, UNIQLO must already acquire the necessary managerial and operational competences prior to establishing a pre sence in these places; but in the case that UNIQLO would not be able to tap on being responsive enough to these threats; this will impact the business results. 3) Opportunities Belonging to an industry where fashion and apparel market trends are unending, UNIQLO is operating in a global business where companies direction and business activities are always expanding. Globalisation provides the apparel industry with grater simultaneity with the help of technology, facilitating the exchange of information with speedier level. Because of interdependence, free trade zone has also seen as profitable because fashion, textile and apparel markets became borderless. While also making larger profits, UNIQLO could invest in social influence or its corporate social responsibility. Whats left for UNQILO is to grab the opportunity of a faster information and knowledge transfer from these locations through a full force IT integration including the customers. The teenager market is also another opportunity the UNIQLO could exploit since this group is very meticulous in value shopping and they have preferences of where to shop and how to shop. 4) Threats Changes in economic conditions, changes in consumption trends and intense competition are just three of the treats that UNQILO, and all other apparel firms, is currently facing. Foreign currency affects the business conduct of UNIQLO because of the locational position of the operations. Johnson and Scholes (2002) relate that strategic positioning is an imperative in realising the strategic capabilities of organisations. UNIQLO has a geographically dispersed operation: fashion designers are in Tokyo, New York and Paris, garnering first hand information in fashion trends; manufacturing departments are in China where cheap labors reside; headquarter is still in Japan which takes responsibility in strategic decision making. Labor and materials could fluctuate depending in the performance of yen comparable to US dollars. In events that the economy of either one of the mentioned locations drifts, UNIQLOs operation will be shaken. In addition, the apparel industry where UNIQLO plays as a ma jor player is contaminated with customers influences where the possibility of switching brands is always a possibility. Conclusion Described as the equivalent of Gap, UNIQLO is increasingly becoming known in the global apparel industry. UNIQLO continued to be a brand of preference because of the quality, simplicity, functionality and cheaper prices of the merchandises. Although UNIQLO is politically influenced by CEPA and US-China memorandum, UNQILO invests only on opportunities that are profitable, advantageous and will purport the continuous geographic expansion of the company. UNIQLO has an advantage when it comes to individual spending basically because clothing is a basic need. While at it, however, UNIQLO must not ignore the social aspects of doing business which is to provide people empowerment when it comes to giving to the government through tax. The company is also committed in enhancing customer service through acquiring the VOC. Entering the apparel market is relatively easy; however, new entrants must face the challenges of building brand awareness and coping with the emergences of new trends. There are at least five major rivals for UNIQLO Bossini, Giordano, Muji, Gap and Benetton. All these rivals are involved in continuous product differentiation since, depending on the fashion trends, substitutes could instantly emerge. Because of the SPA model, UNIQLOs processes are inherently rare; sense of ownership in process responsibilities is the key. The pile em high, sell em cheap concept, as well, is an attribute unique to UNIQLO. In sum, the prevalent strategy at UNIQLO is the continuous domestic and global expansion and low cost production and management, achieved through continuous strengthening of the already reputable brand, ownership of processes, obtaining the VOC, sound distribution and inventory control and efficient store operations. To evaluate, the current strategies of UNIQLO are providing the business with immense profitability and growth. However, UNIQLO already has a record of mistake in focusing more and prioritising international expansions; thus hurting the reputation of the company specially in terms of managerial capacity, expertise and competence. There remains the fact that the products lag behind the quality of the products generated from the fashion centers of the worldwide considering that designers are already in that places. A fact also is that UNIQLO has an immature experience curve in aspects of global market penetration. Shutting down of 16 of the 20 stores in the UK in 2001 and 3 stores in New Jersey are clear-cut evidences of the incompetence on the side of UNIQLO. Global integration proved to be futile especially because UNIQLO is easily shaken up by global economic changes. UNIQLO admits that the closure of the New Jersey stores is because of the recent recessions and investment drifts in the US. In the UK, stores faced closure because of the failure to recognise the consumer preferences of Britons, which are very different with that of Asians and Japanese per se. There are two recommendations for UNIQLO: Asian market integration and establishment on an online shopping site. The first centers the idea that UNIQLO is an Asian product and must be initially offered to Asian consumers. The appreciation of Asian consumers, though they also vary depending on individual cultures, would be much higher compared to that of the Westerners. There are several fashion or brand oriented countries in Asia that UNIQLO has yet to discover such as the Philippines, for instance. Filipinos consider clothing as a staple and the apparel industry in the country is a booming industry. Nonetheless, Filipinos have the invest in quality perception where quality is the primary concern and price is secondary; but if there are products that combine these two features, it will be much appreciated. In addition, export costs would be limited. Online retailing is a proven successful endeavor. Different types of markets and industries are growing because of globalization and the introduction of new information technologies, as well as the pioneer which is the Internet. The key requirements are now centered in quality, speed-to-market, flexibility, innovation, networks, customer service and customization. Internet advertising or sometimes called, as web advertising is a type of advertising in which a person can co Strategic Management at UNIQLO Strategic Management at UNIQLO Introduction Dubbed as Japans retail success story in the new millennium, UNIQLO is a 100% consolidated subsidiary of Fast Retailing Co. Ltd, a Japanese retail holding company. UNIQLO formed the portmanteau for à ¢Ã¢â€š ¬Ã‹Å"unique and à ¢Ã¢â€š ¬Ã‹Å"clothing as am emblem of creativity and individuality of Japanese apparel industry. UNIQLO offers fashionable and high quality clothing at reasonable prices, and was seized as an opportunity to establish a brand position domestically and internationally, combining all the facets of the business from product design to final sales and the operation of the 790 stores around the globe. Primarily offing for a highly brand conscious consumer group, UNIQLO envisions itself as a leading global casual wear company targeting high sales and profitability growth. For UNIQLO, such aim could materialise based on the established strategies such as low cost management, cheapest manufacture and marketing schedules and prioritising customer requirements. Today, UNIQLO is described as the apparel giant Gap, Inc.s counterpart based on the 4, 000% share price increase, making UNIQLO as Japans third largest clothing retailer. However, it is not always victory for UNIQLO; the subsidiary also has its own share of downturns especially on its international expansion. For instance, expansion programmes in the United Kingdom (UK) saw a tumultuous stumble in profits, forcing Fast Retailing to shut down 16 of the 21 UNIQLO stores opened, because of competition. Most recently, three UNIQLO stores in New Jersey were also closed because of economic slumps. Despite these facts, UNIQLO maintains the spirit and still believed that the brand has only but way forward. How UNIQLO will going to do such is central to this paper, focusing on the companys strategic management. External, industry and competitor analysis as well as the internal environment will be addressed. External Analysis Political Analysis Political factors have direct impact on business conducts and operations. Decisions made by the affects the decision-making of retailers and could come in the form of policy or legislation. In Hong Kong, the à ¢Ã¢â€š ¬Ã‹Å"one country, two systems is the prevalent governance philosophy which endows the special administrative region with a high degree of autonomy and its capitalist economic system. Within a capitalistic and free market-oriented economy, retail companies make the majority of microeconomic decisions but they have to conform to specific agreements. Mainland and HK Closer Partnership Economic Arrangement (CEPA) and the US-China Textile Memorandum of Understanding are two examples of this. The former provides UNIQLO with a tariff-free treatment, stating that products which have no existing CEPA rules of origin will enjoy tariff-free treatment upon applications by local manufacturers. The latter could provide UNIQLO with an opportunity for an annual growth of 8-17% in 21 c ategories of Chinese textiles and clothing exports to the US. Labor and customary regulations as well as code of conducts are also complied into including China Social Compliance 9000 and US and EU quotas (RSCA 2006; Doshi 2006). Economic Analysis Domestically and globally, businesses are also being affected by economic factors whereby a strong economy indicates positive results and weak economy signifies the opposite, affecting both businesses and consumers. Hong Kongs gross domestic product is estimated at US$206.7bn with the service sector that contributes 90% of the total GDP. The region is also named as the worlds eleventh largest trading entity. Almost 50% of the total population is employed full-time and the unemployment rate has a continuous average decline by 4.1%, making disposition of income a possibility, a lower cost of living that is (Monthly Digest 2008). Spending is generally devoted for food, housing, healthcare, transportation, amusement, services and apparel. People nowadays are very particular with à ¢Ã¢â€š ¬Ã‹Å"investing in quality clothing thereby resume spending with premium apparel finds (Doshi 2006). Realising this, the price and quality characteristics of UNIQLO has a strategic fit; UNIQLO makes peo ple look fashionable and confident in world-class clothes at a reasonable price through the company-wide integration of the Specialty Store Retailer of Private Label Apparel (SPA) model, a low-cost but effective operation model. Social Analysis Demography or the population characteristics may determine buying patterns and that understanding demographic changes within a particular region or place facilitates determining whether products and services would appeal to customers as well as the number of potential customers (Barney and Hesterly 2006, p. 35). Hong Kong has a total of 6, 985, 300 population based on 2008 estimate and is continuously growing due to immigrant influx from Mainland. According to Doshi, people in HK and elsewhere have a growing interest in private labels. Consumers aspired for having private levels on everyday garments. Casual wear from HK which is known for good design and quality has a positive image on global consumers. Nevertheless, international brands are concentrated in high-end consumers while domestic brands are for low-end consumers (Doshi, 2006). In taking advantage of the wealth of the demography, UNIQLO makes effort on providing high-quality merchandise and generating values to the society by taxes. Further, UNIQLO is a company that is committed in creating positive reputation as manifested in its vision and mission, styles of management, ways of doing business and requirements to employees. Technological Analysis Technological innovations are a priority for the apparel retailing industry but it will remain as labor intensive as it is today. Boosting the industrys productivity, increased in automation has been the recent trend but it is limited on specific functions, to which mostly require human intervention such as sewing and making patterns. Although there are computerised sewing machines that increase the productivity and reduce training time. Further, the uses of computer system software intended for the industry will be on making rough sketches, printing detailed designs and storing of information for easy retrieval. The customer orientation of UNIQLO was basically construed from its website in which customers can give feedbacks by email and discussion board. Hong Productivity Council made a report disclosing that the apparel industry could make sense of information technology (IT) if utilise for order processing, costing analysis, order tracking, material management, reporting and conn ectivity (2004). Industry Analysis Porters Five Forces Analysis A) Threat of Entry Barney and Hesterly (2006, p. 43) point out that new entrants are the firms which have either recently begun operations or those that threaten to begin operations within an industry soon. Notably, the apparel industry is a buyer-driven industry where producers are considering buyers decision-making especially when brand names enter the picture. These buyer-centric industries have low barriers to entry mainly because of intense competition. Utilising brands as a market power source; however, this is a challenge for every clothing company. In the clothing business, mass customisation has seen to be the most effective strategy. Putting strategises into action remains to be in resilience today (Culpan 2002). Therefore, the focus must be on minimising the costs without sacrificing quality and to do this, managerial know how is a must in order to understand interactions with suppliers and consumers, to facilitate creativity and innovation and to maintain mobility in adapting to new market demands (Kincade, Regan and Gibson 2007). Building brand awareness and consumer loyalty is a costly endeavor since it involves advertising needed not only to promote the brand but also on sustaining awareness and loyalty. Strengthening brand names also requires that there are à ¢Ã¢â€š ¬Ã‹Å"quick response programs to increase revenues and manage risks. One of UNIQLOs major resources is its brand name, which is now synonymous with comfortable, high quality and cheap clothing merchandises. Although brand awareness outside the home country is a challenge, it is of intangible value to UNIQLO as a business asset. Brands are valuable and rare and reputable brands are acquired through the impressions one has of the company, and its products or services. Since a brand name is built overtime it becomes costly to imitate thereby providing a sustainable competitive advantage in the apparel industry (Groucutt, Lydley and Forsyth 2004, p. 285). B) Threat of Rivalry Either in home or host countries, apparels, accessories and merchandise will always have a competitor which usually fluctuates in size. The modern market trends for the apparel industry are globalisation and intensified competition, increasing price and lower profit margin pressures, small quantity with high complexity orders, shorter lead times, multiple location operation, changing customer requirements and liberalisation on textile and clothing quota that creates new market dynamics. Being responsive to these market trends shifts the focus of the apparel industry for more extensive product development and improvements at the least possible cost. Such condition forces companies to divert on product differentiation because of high switching cost. In an industry where products are deemed to be à ¢Ã¢â€š ¬Ã‹Å"equal, the key sources of differentiation are brand image, reputation and prior existence (Byoungho 2004b). For UNIQLO, the products themselves are an important source of compet itive edge. UNIQLO strives at developing products of high quality, in various collections to enable the company to reach the highest possible number of customers. As such, the rivals would be endangered when it comes to introducing innovative products. UNIQLO is positioned in the fashion capitals of the world for the purpose of taking advantage of the new information about fashion trends. UNIQLOs ability to quickly adapt to trends and new markets has helped them develop product differentiation, something that is key to the companys success in the apparel industry. According to Tokle (1990), product differentiation is what separates the top competitors from the rest, but it something that is not costly to imitate. This is why their product differentiation is only a temporary competitive advantage. Competitive advantage could be achieved once the organisation learns to manage its capabilities that the end consumers could appreciate and competitors would find difficulties imitating (Po rter 1985; Roney 2004). C) Threat of Substitutes Casual wear is very particular with loose-fit, comfortable and relaxed fit. Athletic or active wear was perceived to be the closest substitute to casual wear as manifested by the booming athletic wear industry. Typically worn as casual fashion clothing, active attires could provide deterrence in the industry. Moreover, the blurring demarcation on the casual clothing family could be also seen as an opportunity for substitutes. Specialised stores offer semi-casual, smart casual and business casual lines. Semi-casual clothes are less presentational than informal but are not as loose as casual dresses. Smart casual purports conservative looks but with harmony on colors, fabrics, shoes and accessories. Business casual, on the other hand, varies in definition but the common element is the collar. Realising this, the bottomline now is the price. Moreover, based on the SPA business model, all the necessary functions at UNIQLO falls under a single umbrella especially the inbound logistics an d the production. UNIQLO is an example of a cut-make-trim company in which in which the company purchase the fabric and retain ownership of the raw materials and work-in-process, and so making it hard for rivals to imitate or produce substitutes for UNQILO brands. D) Threat of Suppliers The prices and availability of commonly used fabrics such as cotton, blends, synthetics and wools might fluctuate significantly due to its dependence on demand, crop yields, weather, supply conditions, transportation costs, government regulations and economic condition among others (Byoungho 2004a). Quota is the major factor that affects the demand and supply of textile and fabrics. Even though the sale of raw materials is standardised, independent contractors, raw material suppliers, importers and apparel manufacturing firms could not isolate themselves from such scenario because of the prospective unsteadiness in the supply chain (Chetty 1999). As well, because of forward vertical integration, coupled with the low barrier to entry, suppliers could easily become rivals. In becoming threat of entry, suppliers could be also become a competitor to already established apparel manufacturers. In addition, contractors is also one of the threats when the demand of the labor increases, it w ill cause labor costs price inflation. Laszlo (2008) stress that there are five main parts of the apparel value chain including raw material supply, provision of components; production networks; export channels and marketing networks at the retail level. Through the process, UNIQLO has an ownership on production and thereby a complete control on the supplies procurement. UNIQLO insources its production and handles the majority of the operational details. Sourcing is a go-to in the apparel industry but it is not rare although it can add value to UNIQLO. E) Threat of Buyers Reaching more and diverse consuming group, the apparel industry is both a stable and unstable industry. Stable because quality price and quality products are the main element and unstable because there are many factors that affect both price and quality. In the point of consumption, for instance, there are à ¢Ã¢â€š ¬Ã‹Å"middle men such as the retail stores that offer an array of brands. In purchasing manufactured apparel, retail stores could have influence on making significant requirements and demands on their purchase, affecting prices. Though quality is inherent, prices would not be reasonable at all, and alternative clothing is readily available. This explains why apparel manufacturing companies are setting up their own stand along stores which will cater to their own produce. Important is that apparel stores must not fall dependent on s specific class of customer. Buyers are increasingly appearing to prefer above standard apparel with a much lower cost, making apparel less dif ferentiated. When selling directly to consumers, buyers would incur a significant portion of their dispensable cash. Same goes with retail store, they purchase apparel at the least possible final cost, but adds up to prices of apparel. UNIQLO is involve in selling to the customers through specialty store marketing, with a minimalist strategy of pile em high, sell em cheap concept that is. In addition, the unbranded fashion or the no-logo concept was perceived to be the main reasons for peoples warm attention (Williamson 2007; Parrish, Cassill and Oxenham 2006). Competitor Analysis Local Competitors 1) Bossini There are three competitors for UNIQLO: Bossini, Giordano and Muji. Bossini International Holdings Limited is an apparel brand owner, retailer and franchiser nestled in Hong Kong. From its onset in 1987, Bossini continued to grow both domestically and internationally. Today, the global distribution network is comprised of 551 directly managed and franchised outlets in Mainland, 322 export franchised outlets, 178 directly managed outlets in Hong Kong, Taiwan, Singapore and Malaysia and 1, 051 outlets in 20 countries. Taking pride on its Bossini brand that is comfortable, easy to mix-and-match, colorful and energetic like the à ¢Ã¢â€š ¬Ã‹Å"Family-Fit brand, Bossini was able to cater to various consumer requirements in a value for money fashion (Bossini Annual Report 2006/2007). The strength of the brand and the people was drawn from the seven practices: face reality, keep it simple, act with the speed of light, set stretch goals, drive quality, create and sustain a learning organisation and keep the A, nurture the B and discard the C. Through this set of practices, Bossini puts emphasis on quality, efficiency and profitability as a source of competitive edge. The company is also continuously building brand awareness by means of innovative cross-regional marketing activities. In enhancing its supply chain, Bossini shorten the product cycle from design to store and will continue to build string ties with them in a proactive manner. Building up an IT system is a strategy meant to drive future growth and profitability. Though the company deals with closure of unsuccessful outlets whenever necessary to divert their attention to areas which needs a closer concentration and with participating in broad campaigns and dual-branding to promote the products and to exp and market reach, Bossini is more focused on its four core markets. 2) Giordano Established in 1981, Giordano is one among the popular and established casual apparel retailer in Asia Pacific Region which employs about 11, 000 staff with over 1, 895 shops operating in 30 territories worldwide. From its restructuring from 1986, the company prepared for international expansion, which was made possible by the initial success in Hong Kong, Mainland and neighboring countries such as Taiwan and Singapore. Known as the most successful homegrown retail stores, Giordano is a pioneering company that participated in drafting of code of practice in the retailing scene and introduced innovations such as the total shopping experience where customers are greeted individually in the doorstops and bade goodbye unto when leaving the store. Envisioning itself in making people feel good while looking great, the companys main strategy is its à ¢Ã¢â€š ¬Ã‹Å"For the People philosophy wherein quality, knowledge, innovation, service and simplicity are at the core. As an apparel of choice, Giordano is also committed in providing simplicity of design, quality workmanship, attentive customer service and value-for-money, allowing the company to strongly build its own loyal following (Giordano 2008). Though the four brands Giordano Ladies, Giordano Concepts, Giordano and Giordano Junior are constantly profitable, the weakness is that Giordano has a limited range of products and that consumers may grew tired of the existing concepts. 3) Muji Ryohin Keikaku, better known as Muji, is an outgrowth from The Seiyu, Ltd. In becoming a separate brand, Muji develops range of apparel, household goods and food that takes pride on being functional, simple and of high quality. Literally means à ¢Ã¢â€š ¬Ã‹Å"no brand, the over 700 Muji products observes the philosophy of simplicity. Primarily purporting an individualistic and diversified lifestyle, Muji follows three processes that is said to be the reason for proving good quality products at lower prices. These are selection of materials, streamlining processes and simplification of packaging. The companys emphasis on preventing materials wastage and improvement of essential product quality as well as time and labor optimisation are the key in achieving operational effectiveness and efficiency. The selection of materials is a very important stage for Muji where suitable raw materials are the main concern. Bulk buying is a strategy wherein quality is the indispensable criterion, underpinning the possibility of producing high quality, low prices products. Thereby, the weakness is on changes in demand and supply of raw materials. Standards at manufacturing stages are also under close scrutiny in order to eliminate waste and reduce cost. When it comes to packaging, Muji sticks to the simplicity philosophy, bearing only product related information and the price tag (Ryohin Keikaku Co., Ltd.). International Competitors 4) Gap Gap, Inc. and United Colors of Benetton are the two international competitors for UNIQLO. Gap, Inc. has been officially incorporated in 1988 as a global specialty and outlet store which offers casual apparel, accessories and personal care products. Gap, Banana Republic, Old Navy and Piperlime are the four primary brands. As a way of building the value of the brands, Gap is very fastidious with brand development, ensuring that value will be integrated from product design to distribution onto marketing, merchandising and shopping environments. The strong point of Gap is its continuous commitment in enhancing the brand; in fact, Gap has an intensive portfolio of brands covering classically styled, high quality, casual apparel at moderate prices for virtually all ages. However, the weakness is on inventory turnover. Emphasising style, quality and good value, Gap embraces a shopper friendly environment where store facades vary depending on selling season, size and location of the store. Just like UNIQLO, Gap is never threatened of closing under-performing stores and expanding and remodeling existing stores (Gap Annual Report 2006). 5) Benetton A global clothing brand which is based in Treviso, Italy, the name Benetton originated from the Benetton family who founded the company in 1965. Now in existence in over 120 countries, Benetton started with only 5 stores in 1979 which were bounded to reach 800 stores today. The 5, 500 network of contemporary stores worldwide are the reason for generating a total turnover of 2 billion euro. Fashion apparel is the core business wherein quality, style and passion through the brands such as United Color of Benetton, Sisley, Playlife and Killer Loop are the main concerns. Mixing energy, colors and practicality, Benetton offers a portfolio of products for men, women and kids. The strength is in its innovation and IT integration in producing 160 million garments annually. At Benetton, superior product quality is achieved through committing every stage of the production process with innovation and creativity. The weakness is on the tendency for incoherent diversification (Benetton website 2 008). Common to all the competitors of UNIQLO, either domestic or international, is the international expansion strategy known as the judo strategy or the conscious decision to move rapidly into new markets where there is uncontested ground.(Hilburt-Davis 2002), and providing the best value of money based on distinct brands. Product differentiation, low cost production and gateway market penetration like UK and the Mainland are other strategies that these competitors pursue, in the same way like UNQILO is doing. It is important that brands must conform to the needs of the customers of varying age structures and preferences and producing brands where value was mounted from the very first step. Quality and customer service are the main concerns, followed by style or design and functionality. Brand development and building brand awareness as well as the overall look of the establishment are also the priorities. Common also to Bossini and Gap is the closure of unproductive stores/outlets whil e Benetton takes pride in its IT integration in production. Bossini also engages in dual-branding in terms of marketing. Since it is also common to all of these competitors to conceptualised product portfolio, the weaknesses are on incoherence in diversifying the products, apart from inventory turnover and focusing on core markets. Typically, when these scenarios happen production will be affected and it would not be advisable for those companies which are into bulk buying especially that the styles are immediately paced out. For UNIQLO, the weaknesses of the domestic and global competitors could be reaped off as new strategies and the strengths could be manipulated as new advantages. The UNIQLO could be upgraded in opening flagships stores in every gateway market so as to equally diversify brands and gateway locations, catering to all forms of demographics. For UNIQLO, product mix and shopping spree would be plausible especially if it will come in bolder shades, with better quality and cheaper prices, but are manufactured based on forecasted demands. To take advantage of the opportunities that competitors impose, UNIQLO must also open its horizon into new product trends including the silver market and the plus-size market as part of the brand concepts. Although all of the competing companies including UNQILO are into casual, everyday wear, what will set UNQILO apart from them is the potential of easy care clothing where fabrics are very fluid and/or wrinkle free. Internal Analysis SWOT Analysis 1) Strengths UNIQLO was deemed successful because of its commitment in divergence which supports the individuality of each family member as well as those with fashion-forward and edgy people. These products are of expected high quality because of the effective global materials procurement. Given this, UNIQLOs products are designed parallel with the customer requirements and worldwide markets trends. Voice of the Consumer (VOC) is one of the key in building the most effective brands. For UNIQLO, however, this is not enough, it should be joined with direct engagement in value chain process and doing it through a low-cost, quality-driven manner. In the post production stage, it is also important for UNQILO to obtain effective distribution management and inventory control. UNIQLO is an expert in store development thereby efficient store operation in addition. 2) Weaknesses Japan and Fast Retailing are devoted in simple, functional clothing with minimalist clothing details rather than cutting edge, extravagant clothing. This is the mark of UNIQLO, but could also be its major weakness in penetrating fashion-oriented places such as London, Paris and New York whereby fashion element of UNIQLO products are very limited. Another weakness is that UNIQLO belongs to a multi-layer distribution structured industry; distribution digestibility is hard, leading to clogging in distribution inventory. UNIQLO is also originally designed for low-end consumers and that they will face a head-to-head competition with all kinds of market such as high end, high street, ethical consumers and cut-price shoppers when operating abroad. In some places, profitability is largely determined by the opportunities of retail season like back-to-school and holidays. In both cases, UNIQLO must already acquire the necessary managerial and operational competences prior to establishing a pr esence in these places; but in the case that UNIQLO would not be able to tap on being responsive enough to these threats; this will impact the business results. 3) Opportunities Belonging to an industry where fashion and apparel market trends are unending, UNIQLO is operating in a global business where companies direction and business activities are always expanding. Globalisation provides the apparel industry with grater simultaneity with the help of technology, facilitating the exchange of information with speedier level. Because of interdependence, free trade zone has also seen as profitable because fashion, textile and apparel markets became borderless. While also making larger profits, UNIQLO could invest in social influence or its corporate social responsibility. Whats left for UNQILO is to grab the opportunity of a faster information and knowledge transfer from these locations through a full force IT integration including the customers. The teenager market is also another opportunity the UNIQLO could exploit since this group is very meticulous in value shopping and they have preferences of where to shop and how to shop. 4) Threats Changes in economic conditions, changes in consumption trends and intense competition are just three of the treats that UNQILO, and all other apparel firms, is currently facing. Foreign currency affects the business conduct of UNIQLO because of the locational position of the operations. Johnson and Scholes (2002) relate that strategic positioning is an imperative in realising the strategic capabilities of organisations. UNIQLO has a geographically dispersed operation: fashion designers are in Tokyo, New York and Paris, garnering first hand information in fashion trends; manufacturing departments are in China where cheap labors reside; headquarter is still in Japan which takes responsibility in strategic decision making. Labor and materials could fluctuate depending in the performance of yen comparable to US dollars. In events that the economy of either one of the mentioned locations drifts, UNIQLOs operation will be shaken. In addition, the apparel industry where UNIQLO plays as a m ajor player is contaminated with customers influences where the possibility of switching brands is always a possibility. Conclusion Described as the equivalent of Gap, UNIQLO is increasingly becoming known in the global apparel industry. UNIQLO continued to be a brand of preference because of the quality, simplicity, functionality and cheaper prices of the merchandises. Although UNIQLO is politically influenced by CEPA and US-China memorandum, UNQILO invests only on opportunities that are profitable, advantageous and will purport the continuous geographic expansion of the company. UNIQLO has an advantage when it comes to individual spending basically because clothing is a basic need. While at it, however, UNIQLO must not ignore the social aspects of doing business which is to provide people empowerment when it comes to giving to the government through tax. The company is also committed in enhancing customer service through acquiring the VOC. Entering the apparel market is relatively easy; however, new entrants must face the challenges of building brand awareness and coping with the emergences of new trends. There are at least five major rivals for UNIQLO Bossini, Giordano, Muji, Gap and Benetton. All these rivals are involved in continuous product differentiation since, depending on the fashion trends, substitutes could instantly emerge. Because of the SPA model, UNIQLOs processes are inherently rare; sense of ownership in process responsibilities is the key. The pile em high, sell em cheap concept, as well, is an attribute unique to UNIQLO. In sum, the prevalent strategy at UNIQLO is the continuous domestic and global expansion and low cost production and management, achieved through continuous strengthening of the already reputable brand, ownership of processes, obtaining the VOC, sound distribution and inventory control and efficient store operations. To evaluate, the current strategies of UNIQLO are providing the business with immense profitability and growth. However, UNIQLO already has a record of mistake in focusing more and prioritising international expansions; thus hurting the reputation of the company specially in terms of managerial capacity, expertise and competence. There remains the fact that the products lag behind the quality of the products generated from the fashion centers of the worldwide considering that designers are already in that places. A fact also is that UNIQLO has an immature experience curve in aspects of global market penetration. Shutting down of 16 of the 20 stores in the UK in 2001 and 3 stores in New Jersey are clear-cut evidences of the incompetence on the side of UNIQLO. Global integration proved to be futile especially because UNIQLO is easily shaken up by global economic changes. UNIQLO admits that the closure of the New Jersey stores is because of the recent recessions and investment drifts i n the US. In the UK, stores faced closure because of the failure to recognise the consumer preferences of Britons, which are very different with that of Asians and Japanese per se. There are two recommendations for UNIQLO: Asian market integration and establishment on an online shopping site. The first centers the idea that UNIQLO is an Asian product and must be initially offered to Asian consumers. The appreciation of Asian consumers, though they also vary depending on individual cultures, would be much higher compared to that of the Wester