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FAT FACE STRATEGY REPORT
Introduction
For this Strategy report I have chosen to examine Fat Face Ltd. ... It’s also why you’ll never, ever see a Fat Face tie!”
1) Purpose and Objectives
The overall purpose for Fat Face Ltd is to make a profit and to provide a good return for its shareholders. ... Within the last year Fat Face has opened a further twelve stored throughout the UK and continues to do so, aiming its outlets towards large towns, cities and beachside resorts. ...
Some of the objective Fat Face sets itself are as follows:
i. ... To be dedicated to quality with both products and the service Fat Face provides. ...
Political:
Corporation Tax affects the company, if the Government chose to lower employment taxes such as national insurance contributions the company is liable for,
Fat Face might be more willing to take on extra employees. All Fat Face stores are given a certain number of labour hours allocated to them each week. ... Fat Face must also be aware of laws on equal opportunities when taking on new staff for their expansion. ... Any litigation made by the government can have a direct consequence for Fat face Ltd. ... In the January 2003 sale, Fat Face had to pay royalties to use Kellogg’s special K branding on their promotion of ‘reduced fat clothes’. ...
The Sale of Goods Act means that Fat Face has to provide a refund policy. ... It says Fat Face will happily exchange or give credit for any goods returned within 28 days, and that this does not affects the customers statutory rights. ...
Lastly the Companies Act means Fat Face must publish their accounts and what dividends their shareholders are entitled to because it is a private limited company. This can be damaging because competitors can easily find out how well Fat Face is doing and the distribution of its finances. ...
As well as the prices Fat Face charge, they must consider the cost of raw materials, wages, and the prices of their competitors. ... This affects the spending habits of consumers and the company must plan its strategy to the current rate of inflation and the expectations of its rise or fall. The Financial Times reported “UK inflation rose to its highest level in almost 5 years, driven up by rising clothes and footwear costs”
The level of unemployment is important for the company because if national unemployment is high, personal spending will be low and Fat Face will experience decreased sales. ... At present this won’t affect Fat Face. ...
As mentioned in the objective of Fat Face Ltd, expansion is a vital part of the corporate strategy. ... 75%
Social and Cultural:
Social issues are very important for Fat Face when deciding upon their business strategy. ... Fat Face is all about ‘out there’ people with an active lifestyle. ... The Fat Face label aims to give a sense of status, both because the clothes are more expensive than most high street brands and are aimed at middle class families who are often found on the ski slopes of Whistler, Aspen or the French Alps. ...
Knowing where their consumers live so that Fat Face knows where the products should be sold. ... Fat Face is able to achieve this through its mail order service. ... By giving their name and address, Fat Face is able to work out the areas that have a high frequency of consumers.
Fat Face must also adapt constantly to the culture it operates in. ... To be up to date with the current culture, Fat Face divides the year into 5 seasons: Spring, Summer, High Summer, Autumn/winter and Christmas. ... Fat Face spends a great deal of money on research and development to find out which styles and colours are going to be successful.
Approximate Word count = 3038
Approximate Pages = 12.2
(250 words per page double spaced)
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