Business Strategy Master Case Study Example | Topics and Well Written Essays - 4250 words

Business Strategy Master - Case Study Example The retail business had grown in size by 1990 and it had even acquired two manufacturing companies in China. In 1991, Giordano was listed in the Hong Kong stock exchange as Giordano Holdings limited and this enabled it to incorporate Bermuda to become Giordano group. This was an opportunity for the company to expand especially in markets outside Hong Kong. The difficulties that the company experienced at the time were the Asian financial crisis, the outbreak of severe acute respiratory syndrome (SARS) and disruptions of operations in China. Despite all these, it had improved tremendously in its benefits and revenues. By the year 2004, the company was boasting of a multi-brand development, geographical and market expansion in Asia and Middle East. The economy grew and the company had increased property and stock markets. This made it to earn wholesale margins. In the year 2005, the company's net profit rose yet again but by the third quarter, it had dropped because of heavy rainfall, a spew of typhoons and warm temperatures in the region. In the same year, they signed an agreement with Walt Disney to improve their brand. The workers of this company were at the forefront of ensuring that the company's objectives were achieved. The employees were offered salaries that were higher than those in the market and they were also retained. From 1997 to 2003, Hong Kong revenues began declining after a significant drop in tourist activity. Giordano Company's primary markets are china, Singapore, and Taiwan. Other markets include Australia, Malaysia, Indonesia, Thailand, Japan, Korea and the Middle East. This company's main competitors are: Esprit holdings, Benetton, Uniqlo, Bossini, G 2000, Baleno and U-right companies. With the growing and changing global retail, there is need for this company to explore different strategies to counter the different markets and have a competitive advantage over their competitors (Needle, 2004). Question 1 Macro factors that affect business performance and profitability in this industry. The key macro factors that are brought out in this organization are the political, economic, socio-cultural, technological, legal, and the environmental influences. They are factors that have affected the performance and profitability of the organization. Political trend is such one factor that has manifested itself in the company. During the venture into the Chinese market, there was a fall out between a Chinese leader and Jimmy Lai because of the way he openly criticized his government which led to the closure of the company's outlet in Beijing. Jimmy Lai had to withdraw from the management of the company as the Chinese government continued to close the company's other outlets. As soon as his presence was no longer felt, Giordano Company introduced new policies that enabled it open new shops in China. Unemployment is an economic factor which has affected this industry. In Hong Kong, the market was doing well until there was a significant drop in the tourism industry. Within six yea rs, the economy had experienced at least three economic recessions which led to high unemployment rates (Needle, 2004). Leisure is a socio cultural activity that is brought out in th