Management case study from fur to fendi 7 PDF

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CASE: HBC: From Fur to Fendi

Khushneet kaur

Instructor- Christopher Barret

MGMT 1120 (A07)

Introduction

The case HBC From Fur to Fendi will discuss some of the concepts and strategies that Hudson Bay company used to incline the profits as well as to maintain its name in the competitive market. 1.The HBC mission was to retain its name in the competitive market after suffering from the changing tastes among the customers for this they cut down their prices and improved customer satisfaction. The cooperation and support of company’s stakeholders helped in achieving the common goal. Moreover, the demand of the stakeholders was to help the suppliers by sharing the goal of highest quality, providing customers superior value in products, rewarding employees of their excellent jobs. 2. SWOT analysis of HBC consisted of internal and external assessment and they are stated as follows: Weakness- the HBC started to decrease its value in the market due to change in the tastes of the people and reduced the sales of fur products. 1

Strengths – The HBC company maintained its reputation and increased its earnings after making certain modification to their sales and diversified its products. Opportunities- HBC company created its opportunities in increasing its sales in the market by dropping 60% of its former brands and relaunching new brands such as Armani, Chanel in different locations of Canada. Threats- HBC is facing threats because competitors are making diverse range of products to increase their sales day by day as well as marketing and promotional strategies are being used. 3. Porters five forces of industry structure are stated below: HBC faced an industry competition with the introduction of rivalry firms such as Walmart, old navy, which weakened the economy of an organisation. I think porter’s forces for the industry system are of moderate level because HBC atracts the customers by providing them wide range of branded products. In addition to it there is a moderate threat to bargaining level among the suppliers and customers as suppliers will sell their items at the listed prices and customers will purchase goods of same prices so there is a less option of bargaining in the market industry. HBC is making profits among the competitors due to its immense no of options among the goods sector. 4. It is clearly shown from the figure 10.6 that HBC follows BCG matrix strategy (Boston consulting group) which further includes grow the stars and milk the cash flow strategy in case of corporate level strategy because they are earning huge amount of profits through substantial expanding in the market industry by selling the diversified products which results in the strong

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cash flows. The remaining question marks and dogs does not applicable Fur and Fendi industry as they modestly grow towards the profits.

Conclusion In the conclusion, the case Hudson bay company describes about the growth of fur industry and the challenges faced by the organisation in the competitive industry to accomplish their goals.

References Schermerhorn. J., & Bachrach. D., & wright. B., (n.d.). Wiley. Management Harvard (n.d.). HBC from fur to fendi case study. Retrieved from htps://Tpi.bb.pearsoncmg.com/tpi/lti/basic “Business policy and strategy”. Retrieved from htps://clabutap.weebly.com/-swot-strenghts-weeknesses-opportunities-threats

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