To: Mr. Frank
From: Mr. Perez
Subject: Review and recommendations for future development
Date: 1st June 2004
In response to your request for advice in dealing with problems faced by Skinclad. I wish to submit a report that would identify the factors limiting the company ability to perform creditably, together with recommendations that would profitably increase sales in the short and medium term.
2.0 ENVIRONMENTAL FACTORS
Skinclad has tremendous potential for increased growth, with its environmental factors (see appendix I) playing a major role, in achieving that objective.
The marketing environment would refer to those external trading forces that directly or indirectly influence an organisation's acquisition of inputs and generation of outputs.
(Dibbs & Simkin pg.199. )
The marketing environment consists of:
3.0 EXTERNAL ENVIROMENT
The External Environment includes the macro and micro-environmental factors which would be reviewed in relation to what input it would have on Skinclad business over the next five years.
3.1 Micro Environment
The micro-environment is considered to be an external factor, but is closer to the company and can be commonly called by the acronym SPICC, which refers to:
Skinclad's suppliers have constantly been able to supply high quality products, but have maintained basically the same prices throughout, despite the fact that there was a market depression. It is said that
A company will lose competitive advantage on its final product offering if it does not purchase quality raw materials and component parts from its suppliers at the right price, within the time frame set by an ever more demanding industry.
(Ray Wright pg. 28)
Skinclad would have to negotiate with its present suppliers or find new ones that make more economic sense.
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