Ralph Lauren Strategy Paper

Only available on StudyMode
  • Download(s) : 262
  • Published : February 5, 2013
Open Document
Text Preview
Module 2: Mission, Goals, and Strategic Management Process
Module 3: External Analysis

Module 2: Mission, Goals, and Strategic Management Process
Module 3: External Analysis
Group: Diamonds
Ralph Lauren Corporation
Strategy Term Project
MGT 695 – 01
Dr. Hochradel

Module 2: Mission, Goals, and the Strategic Management Process The mission of Ralph Lauren is to provide quality product, bringing different worlds together and inviting people into their dream and vision (McAllister, 2012). They are the true innovators of lifestyle advertisements that tell a story and the first to create stores that encourage customer participation in that lifestyle (McAllister, 2012). Ralph Lauren has 3 major goals:

• Build and extend the brand by uniquely showcasing the world of Ralph Lauren through advertising and marketing. The Ralph Lauren Company also plans to expand and extend the Ralph Lauren lifestyle through new products, in new categories, and in new parts of the world. (Johnston, Watkins, & Wright, 2005) • Keeping its specialty retail is also extremely important. Polo continues to increase the amount of exclusive or limited-distribution product in its Ralph Lauren stores. They also plan on making significant advances in how it operates its retail stores by adding experience and strength to the leadership of the specialty retail group and coupling it with the right merchandise and marketing support. (Johnston, Watkins, & Wright, 2005) • Expanding its international presence so that they can broaden their reach through increasing direct brand ownership and control with new specialty retail store openings. (Johnston, Watkins, & Wright, 2005) Yes, the firm has long–term goals that might become challenging. For instance, expanding internationally especially in Europe has been challenging. Sales in Europe have shown little growth, therefore; Polo Ralph Lauren is currently finding new ways to reduce costs through changes in its infrastructure. (Johnston, Watkins, & Wright, 2005) Polo Ralph Lauren’s main strategic plan to grow the company is creating new stores because it makes up for almost one-third of its revenues. Creating new stores is a part of intended strategies because the company carefully plans where they want their store according to the amount of business the company plan on acquiring in a particular area. (Johnston, Watkins, & Wright, 2005) Module 3: External Analysis

In the macro environment, Ralph Lauren Corporation has and will be impacted by all the changes that will occur. In the macro environment the company is impacted by the political, economical, sociocultural, technological, ecological and legal factors. Political factors are the actions of government that can influence the behavior and decisions of firms. These factors can have a direct impact on the way businesses operate. In the United States business firms face more regulations then other nations (Viking, 2009). According to (Viking, 2009), employee rights in the United States have a large effect on business, and with the apparel industry requiring much labor and work employee laws are significant. Employee laws are minimum wage, over time, benefits and health and safety regulations. This means Ralph Lauren has to pay employees at least minimum wage and for overtime worked. The company has to offer benefits to full time employees and follow OSHA regulations when it comes to safety. Also the company has to adhere to trade regulations when importing and exporting goods overseas. Economic factors impact the economy. Some ways Ralph Lauren can be impacted economically are through growth rates, interest rates, and levels of employment, price stability and currency exchange rates. (Viking, 2009) states that for the apparel industry in the United States, such as Ralph Lauren, the future does not look promising. Wage and salary employment in the apparel industry is expected to decline which leads to...
tracking img