"Running Head: STRATEGIC PLAN, PART II – SWOT ANALYSIS 1Strategic Plan, Part II – SWOT Analysis(Name)(Course)(Instructor)(Date) STRATEGIC PLAN, PART II – SWOT ANALYSIS 2Introduction With the tumultuous nature of the contemporary business environments, it hasbecome increasingly important for business enterprises to understand their strategiccapabilities in order to respond to the changing external environment (Luther, 2011). In thisregard, SWOT analysis tool, which explores an organization’s strengths (S), weaknesses (W),opportunities (O) and threats (T) has become extremely vital for contemporary businessenterprises as it provides them with strategic options based on their capabilities andweakness, and the available opportunities and potential threats. This paper provides a criticalanalysis of external and internal forces and trends facing City Hunks & Divas Clothing Ltd.Particularly, this analysis will include forces and trends like legal and regulatory forces,economic trends, technological trends, innovation and social trends in the company’s externalenvironment, and strategy, structures, business process, resources, goals, strategic capabilitiesand culture in the company’s internal environment. Economic Forces and Trends Economic forces play a very important role in shaping organizational practices(Ahmed et al, 2001). Since City Hunks & Divas Clothing Ltd is based in China, the economictrends and forces in the country seem to impact largely on its performance. In this case, theconsumer purchasing power as indicated by the country’s GDP per-capita, interest rates,labor availability and overall economic progress in China can be considered as playingsignificant role in enhancing the success of companies in the country (). With GDP per capitaof $ 5,432 in the year 2011 (Starr, 2011), it is clear that the consumer purchasing power is onthe rise in China. Moreover, a study conducted by Dodson (2011) indicated that about 57% ofthe Chinese population by the year 2011 is middle class. This is a clear indication that, City STRATEGIC PLAN, PART II – SWOT ANALYSIS 3Hunks and Divas Clothing Ltd is likely to benefit from the increasing consumer purchasingpower in the country. Moreover, capital availability for businesses in China is high, since the interest ratesin the country are at an average of 6% p.a. (Starr, 2011). Reinforced with the high availabilityof cheap and skilled labor, it is clearly evident that the economic conditions in China favorbusiness growth and development. In this regard, City Hunks & Divas Clothing Ltd is likelyto expand quickly due to the availability of capital and cheap labor in the country. Legal and Regulatory Forces and Trends Despite the flourishing economic progress in China, its legislative and regulatorysystem is still not clearly defined compared with those of other developed countries (Dodson,2011). The laws have not been considered as ideally perfect as it has been in the developedcountries. As a result, investors’ confidence in the country has been low and this can be adisaster for the development of various industries in the country. In the wake of theadvancing globalization in China today, the government has recognized the importance ofeffective and perfect legislative system (Starr, 2011). As a result, the Chinese government hasoffered to develop new laws and perfect the existing legal policies governingentrepreneurship. By doing so, it is expected that the business environment in the country willbe favorable for both new and existing investors in the country. Based on these trends, it isclearly evident that City Hunks & Divas Clothing Ltd will be able to enjoy the legislativerestructuring in the country.Technological and Innovation Forces and TrendsAccording to Wei et al (2011), technological forces and trends affect the way businessoperations are conducted both in the local and overseas markets. With the rapidly advancing STRATEGIC PLAN, PART II – SWOT ANALYSIS 4technology in China today, business organizations are finding it easier to link with theirsuppliers, distributors and customers through the advancing IT systems in the country. Inorder to enhance efficiency in its supply chain, City Hunks & Divas Clothing Ltd hasestablished an integrated supply chain (Dyer, 2000). This has been done through establishingstrategic links with its suppliers and distributors (outlet stores). The availability of sophisticated IT systems in China has enabled the company tocollaborate with its stakeholders within its supply chain more efficiently. As a result, highefficiency has been realized in the company’s entire supply chain. Moreover, the increasingusage of the internet in China has been considered by Wei et al (2011) as an emergingopportunity for business organizations to reach their target customers through the internet.With its website and presence in almost all the social networking sites in China, City Hunks& Divas Clothing Ltd has been able to achieve optimal marketing for its products over theinternet. Socio-cultural Forces and TrendsSocio-cultural trends include the demographic drifts, cultural priorities and consumerlifestyles within a particular region or country. Being one of the most populous countries withabout 1.2 billion people, China offers a potential market for businesses within its economy.According to Dodson (2011), the currently increasing urbanization in China is one of the keydrivers for the increasing demand for globally recognized brands. Precisely, the increasingconsideration of the western fashions by most of the urbanized Chinese youths can be apotential opportunity for City Hunks & Divas Clothing Ltd which targets the youthfulpopulation with its highly dynamic fashion designs for the clothes it sells. With most of the Chinese consumers today embracing modernization in their day-to- day activities (Cheskin, n.d), offering them with modern products with global appeal can be a STRATEGIC PLAN, PART II – SWOT ANALYSIS 5source of advantage for companies in the apparel fashion industry. Additionally, theincreasing coverage of women fashion in the media in China today can be considered as oneof the driving forces of currently revolutionizing clothes fashion market in the country. Thesetrends and opportunities offer City Hunks & Divas Clothing Ltd with new opportunities byfocusing on global designs that suits the needs of the Chinese markets. Moreover, the currently increasing usage of the social media in China can beconsidered as an opportunity through which businesses can collaborate with their customers(Wei et al, 2011). With the popularity of the social networking sites being on the rise inChina today, business organizations are being offered with new opportunities to reach theircustomers easily and also engage them. On this basis, City Hunks & Divas Clothing Ltdneeds to adopt the social media platform as part of its CRM strategy in order to reachcustomers easily and quickly at low or no costs. The Company’s StrategyStrategy can be considered as ‘the direction and scope of a business enterprise over acertain period of time with an aim of achieving competitive advantage’ (Hooley et al, 2011,p. 7). Strategies can be meant to reduce costs, position a business better in the market, orfacilitate higher customer value proposition. One of the outstanding strategies in City Hunks& Divas Clothing Ltd is its adoption of integrated supply chain. Through integrating itssupply chin with all its stakeholders, the company has been able to realize agility in its supplychain. As a result, the company has been able to realize quick response in its supply anddemand chains. Another key strategy adopted by City Hunks & Divas Clothing Ltd is the targeting ofthe youthful population. With the demand for globally recognized fashion products beingmore prioritized by the youths in China today (Marsha et al, 2004), targeting the youthful STRATEGIC PLAN, PART II – SWOT ANALYSIS 6population in China has made it easier for the company to acquire popularity among theyouths. As a result, adopting strategic directions like targeting the youth and adoptingintegrated supply chain have enabled the company to remain competitive in the markets. Business ProcessesBusiness processes are structured activities within an organization meant to produce aparticular product/service (Lowson & Hunter, 1999). City Hunks & Divas Clothing Ltd willrecruit a very competent management team in order to make possible to pursue strategic goalssince the management will adopt strategic management design as part of its managementprocess. In terms of operational processes, the company will adopt an internet market strategywhere the use of the social media and Google ads will be employed in ensuring that thedot.com population in China is reached quickly. Essentially, the company will establish atechnical support which will ensure that all customers’ feedbacks, new orders and complaintsare quickly responded to. By doing so, the company will be able to acquire competitiveadvantage as it would be able to respond to its customers' needs quickly and moreconveniently. Business GoalsBusiness goals are key targets established to ensure that an organization pursues astrategic direction (Adkins & Caldwell, 2004). The goal of City Hunks & Divas Clothing Ltdis to become a market leader in the Chinese apparel industry.This goal has been realizedthrough focusing on quality and modest fashions that meets the needs of the target customers.Moreover, offering low-priced and quality clothes have been a key strategy towards therealization of this goal. As a result having this goal, the company will have provided a guideto all stakeholders in pursuing the strategic directions meant to actualize this goal. As a result,it will be easier for the company to succeed in the markets. STRATEGIC PLAN, PART II – SWOT ANALYSIS 7City Hunks & Divas Clothing Ltd Strategic Capabilities The company will be technology intensive where most of the operations within thesupply will be electronically controlled. Since with IT-based supply chain quick response iseasily realized, adopting IT applications in its supply chain will ensure that City Hunks &Divas Clothing Ltd remains competitive by responding quickly to the customers' needs.Particularly, the flexibility of the company’s systems enhances its ability to adjust quickly toany changes in the market needs. The company’s highly competent management team willensure that the business pursues the best strategic options based on the changing businessenvironment.The Organization Culture in City Hunks & Divas Clothing LtdOrganizational culture affects the way people and groups interact with each within theorganization (Adkins & Caldwell, 2004). Being a quality-oriented organization, City Hunks& Divas Clothing Ltd will prioritize quality standards within its value chain. This will startby establishing a code of ethics which will be distributed to all the stakeholders within thecompany’s processes. Moreover, leadership that upholds and supports organizational learningthrough new innovations will be upheld in the company. STRATEGIC PLAN, PART II – SWOT ANALYSIS 8References Adkins, B. & Caldwell, D. (2004). Firm or subgroup culture: Where does fitting in matter most? Journal of Organizational Behavior, 25(8), 969–978Ahmed, N., Montagno, R. & Firenze, J. (2001). Operations strategy and organizational performance: an empirical study. International Journal of Operations &Production Management, 16(5), 41-53.Cheskin. (n.d). China’s Consumer Revolution: Fresh Perspectives. Retrieved on Jan 14, 2012from: http://www.cheskin.com/cms/files/i/articles//27__China_cardsv4.pdfDodson, B. (2011). China Inside Out: 10 Irreversible trends reshaping China and itsrelationship with the world. New Jersey: Wiley Publishers.Dyer, J. (2000). Collaborative advantage: Winning through extended enterprise suppliernetworks.Oxford University: Oxford University Press.Hooley, G., Nicoulaud, B. & Piercy, N. 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