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Running head: KANDRA SCOTT 1
KANDRA SCOTT 4
Kandra Scott Company Analysis
Names
Institution
TABLE OF CONTENTS
CHAPTER
PAGE
Kandra Scott Company Internal Analysis 3
SWOT Analysis 5
Kendra Scott Human Resource Analysis 7
Kendra Scott Operations 8
Kendra Scott Marketing 9
Kendra Scott Organization Structure 10
Kendra Scott Organization Background 11
Kendra Scott VRIO Framework 13
External Analysis 19
SWOT Analysis 23
Kandra Scott Company Middle East Analysis 27
Bahrain Middle East and Saudi Arabian Market 30
Kendra Scott Strategic 35
Kendra Scott Middle East Organization Structure 37
Conclusion 40
References 41
Kandra Scott Company Internal Analysis
Introduction
Company Despription
Kendra Scott company was established in the year 2002, and its
headquarters is based in Texas, Austin. Currently, the company
boasts of 2000 employees while the Berkshire Partners
recapitalize the capital base. Indeed, the company has practiced
a Non-traditional retailing strategy that has enabled for its
success. Apparently, Kandra Scott started the business with just
$500 in one of her bedrooms (Kendra Scott, 2017). Initially, she
was moving from one door to another while selling jewelry that
included bracelets, earrings, rings, and necklaces. Slowly by
slowly the business empire rapidly increased and grow. The
company is on the verge of expanding internationally with more
locations that are physical across the globe. Despite the
physical stores, the company has also established the great
online presence. One of the most outstanding components of the
business is the giving back to the community initiative (Kendra
Scott, 2017). Through the aspect of giving back, the
organization has given back to the community close to $1
million including $60,000 jewelry pieces to more than 900
organizations.
Kandra Scott happens to be one of the leading brands in the
fashion accessories. The company happens to be inspired and
motivated by the travel and sense personal experiences of the
society being spearheaded by Kandra Scott who happens to be
the CEO. Indeed, the organization happens to be the true
business with an Omni-channel model as a premium retailers
like the Bloomingdale, Nordstrom, and Nieman Marcus, Von
Maur together with more than 700 global boutique specialists.
Kendra Scott boasts of the thriving corporation with more than
80 retail stores stand alone in the country of America (Kendra
Scott, 2017). Indeed, Kandra Scott remains to be famous due to
it as the comprehensive collection of the jewelry designed in an
elegant manner including the categories of lifestyles like the
fine jewelry, home accessories, and beauty products. Indeed, the
brand has consistently remained innovative in providing
customized products due to the available experience at Kendra
Scott stores.
Internal Analysis
Financially, the company has been performing well over the last
number of years. Over the past five years, the company’s
revenue trend has been increasing at a margin of 7.1%.
Currently, the annual revenue for the company stands at
$180,000 as at 2016. As at 2016, the growth in gross profits for
the organization was 12%. The inventory turnover for the
organization was 23.6% while the Fixed Assets Turnover for the
organization was 8.1%. For the profitability ratios, the
organization has performed well (Kendra Scott, 2017). This is
an indication that indeed, the corporation is geared towards
attaining success. For the profit margin, the organization has
established at a percentage of 2%. On the same note, the returns
on the shareholder's equity remain at 8.2%. The dividend payout
ratio remains at -2.0%. For the liquidity ratio, the current ratio
stands at 1.31 while the quick ratio remains at 0.57. The
solvency ratio is evaluated by the Debt to Total Assets ratio that
is 0.71; the Time Interest Earned remains 32.4 while the Times
interest earned cash is 41.4 (Kendra Scott, 2017). From the
financial analysis indicates the incomes for the consumers have
increased causing the consumers to continue spending more.
The household income for those that earn more than $150k
continues to spend more than 2.1% of their earnings in jewelry.
Indeed, the consumer’s purchasing power has increased due to
the consumer’s income. Out of the spending’s Jewelry
accounted for 34%, the spending’s on handbags is 30%,
Sunglasses 6%, watches 7%, hosiery 125, watches 6%.
SWOT ANALYSIS
· Strengths
Uniqueness and Style: The products like the necklaces are
manufactured from the various types of lengths, ornaments,
beading styles, and beads. Furthermore, the various types of
varieties that the necklaces are composed of with great talents
in the jewelry creation. There exist no identical necklaces since
they stand out from the competitors that might be selling these
same products.
· Experience
For a very long time, Lexie and Katie have been constructing
jewels. This has enabled them to be more confident, creative
and efficient. The two have made several types of necklaces and
the knowledge how to pull together the various ornaments in the
strands. This knowledge on how to assemble the jewelry makes
them have the capacity of making any necklaces that accounts
as great advantage in customization (Leadership Analysis,
2017).
· Price:
The directors had great access to the boutique wholesales of the
beads. They are able to purchase the beads at a price that is less
expensive, so this is what drives the organization into making
many profits.
· Weaknesses
The new to Sell: Both Lexie and Katie have never sold jewels
before in that great mass scale. The two have created for
families and friends that they have never practiced it at a larger
scale. The two do not have the great experience in setting up the
store and shops (Kendra Scott, 2017).
Location: despite the fact that they have been into many cities
they have a challenge in meeting, ship the necklaces, make the
customers available or meeting due to accessibility.
· Opportunities:
The organization has a Make-A-Wish foundation that is aimed
at the organization apportioning part of their income there. The
aspect of donation is indeed a huge advantage for the
organization. The other opportunity is the market. There is a
great opportunity for the organization to reach out to very many
customers in a large area for instance in Houston, Norman and
Fort Worth (Leadership Analysis, 2017).
· Threats
There is great competition in the breaded necklace industry.
Presently, very many women are participating in the industry as
they sell the Etsy through various mobile phone applications
and sites of the social media. Another threat is the number of
great companies dealing with jewelry. An example of such
countries includes Dot and Stells. These corporations have
started constructing long necklaces that are handmade. This has
made it more popular with great fun base and the customers.
Figure 1: Kendra Scott SWOT Analysis
Kendra Scott Human Resource Analysis
As a brand, the organization continues to dream big as a brand,
inspired design, colorfully confidence the organization has
encouraged the staffs to work as a family, philanthropy, and
fashion. Therefore, the company continues to value the
employees as the soul and heart of the brand. Presently, the
organization boasts of more than 2,000 employees that are the
source of the company's success. The employees are innovative
of the new state of the art design facilities that have encouraged
the growth and culture of the company. The company offers the
members of staff some parental leave, great bonuses among
other benefits.
Kendra Scott Operations
The company is headed by a Board of Directors and in
LifeWorks board from the year 2012. After being launched, the
organization has grown the sales volume to more than $80
million worth of sales as the pioneer of the corporation being
spotted with great public figures like Gwyneth Paltrow, Fey
Tina, and Reese Witherspoon. Indeed, the operations at the then
organization have seen it growing aggressively with the urge of
pursuing commercial contracts from the larger stores. The
management at the organization has incessantly practiced more
excellent and superior management skills in the organization.
The operations of the organization are based on confidence in
doing a better job (Leadership Analysis, 2017). The operations
are based on value based on effectiveness and value-based
relationship. One of the major structures implemented by the
organization incorporates a good policy on training whereby the
workers go more than customer service. For instance, the
employees are encouraged to learn and be more passionate and
diligent at their work.
Kendra Scott Marketing
The organization markets through the concept of the open-sale
idea that has the presence of a Color Bar. In this regards, the
associates are trained in making good jewelry. Ideally, the
organization has opened several stores countrywide and other
locations (Leadership Analysis, 2017). This has enabled the
organization to increase its brand presence as it gains more
customers. Several celebrities have also embraced the [products
offered from the various stores and this acts as a great milestone
for the organization. As a brand, the company continues to
produce great staffs that later advertised through the various
media platforms like the websites and magazines (Leadership
Analysis, 2017). Another marketing tool implemented by
Kendra Scott is the aspect of giving back to the community. In
this regard, they are considered to be very passionate and
generous indeed. The home collections for the products remain
not to be like any other in the market. The products designed
and produced in a large scale of stones that are genuine
including shells. After, they are paired with great jewelry
customer details that are stored as pieces.
Kendra Scott Organization Structure
The organizational structure continues to expect great
dedication from the members of staffs. The organization
practices a form of Product based organization structure and a
functional organization structures. In essence, the organization
focusses on the organization structure and the functions are
concentrating on the specific areas and specializations. As it is
evident, these companies apply this type of the various
structures that they want to organize its operations in the
various employee groupings, departments, skills shared, sales
and marketing, knowledge. The other structures that are based
on the various products of the organization of the lines and the
products of the company. As a retail store, the store is typically
established in the local structure that is available in the various
cities. This structure is differentiated in the different locations
that create the different departments like in finance, operations,
and marketing. The organization is led by a Board of Directors
that are then assisted by the Branch managers and the product
managers then the department heads like the Finance,
marketing, and product managers.
Conclusion
In conclusion, the internal structure of Kendra Scott has proved
that the primary reason for the organization success is the
management structure that has been implemented in the
organization (Leadership Analysis, 2017). The organization has
established proper marketing tools blended with the innovation
that is in the organization of mix and color this is done by the
design team of the organization. Indeed, for the internal
structure of the organization, one can judge that passion to
something leads to greater heights of achievements. The case of
$500 to a $250 million empire is the real testimony to true
success.
The purpose for this part is to highlight the strategic analysis of
Kendra Scott and how the strategies have been applied well in
the organization. The paper shall discuss the PESTLE and VRIO
frameworks. In order to attract a proper portrait, the paper shall
utilize proper information from the well sources and apply them
in answering the questions from the intelligent integrative way.
The main purpose of this paper entails providing an explanation
of the importance of strategic analysis in Kendra Scott. Besides,
the paper shall also explain and identify the tools and
methodologies of Kendra Scott strategic analysis in the
examination of the organization external and internal
environments.
Strategic Analysis
According to scholars, strategic analysis is an informed theory
that examines the environment that a company is operating.
Understanding the company’s interaction with the external and
internal environments shall importantly improve how the
company becomes efficient and effective through growth of
Kendra Scott capacity in distributing and positioning the
resources in the organization in a logical way. Therefore,
strategic analysis stands to be an important part of strategic
planning development. Accordingly, strategic analysis stands as
an important part of the organization’s control program and
evaluation within an organization as it offers the Directors and
managers with an inclusive evaluation of the company’s
capacity and factors within the market (Kendra Scott, 2017).
Therefore, through this process the vulnerabilities and
opportunities in the organization shall be established and
ascertain the opportunities for growth.
Currently, there exists several planning tools and strategic
analysis that are present in assisting business environment
analysis both external and internal encompassing the
environment that is present. Some of the tools that are available
in business analysis includes SWOT framework, PESTLE
framework, VRIO framework, Porter’s Five, Value chain
analysis.
Kendra Scott Organization Background
. The company is on the verge of expanding internationally with
more locations that are physical across the globe. Despite the
physical stores, the company has also established the great
online presence. One of the most outstanding components of the
business is the giving back to the community initiative (Kendra
Scott, 2017). Through the aspect of giving back, the
organization has given back to the community close to $1
million including $60,000 jewelry pieces to more than 900
organizations.
Currently, the company boasts of 2000 employees while the
Berkshire Partners recapitalize the capital base. Indeed, the
company has practiced a Non-traditional retailing strategy that
has enabled for its success. Apparently, Kendra Scott started the
business with just $500 in one of her bedrooms (Kendra Scott,
2017). Initially, she was moving from one door to another while
selling jewelry that included bracelets, earrings, rings, and
necklaces. Slowly by slowly the business empire rapidly
increased and grow.
Kendra Scott boasts of the thriving corporation with more than
80 retail stores stand alone in the country of America (Kendra
Scott, 2017). Indeed, Kendra Scott remains to be famous due to
it as the comprehensive collection of the jewelry designed in an
elegant manner including the categories of lifestyles like the
fine jewelry, home accessories, and beauty products. Indeed, the
brand has consistently remained innovative in providing
customized products due to the available experience at Kendra
Scott stores. The company was established in the year 2002, and
its headquarters is based in Texas, Austin.
Kendra Scott happens to be one of the leading brands in the
fashion accessories. The company happens to be inspired and
motivated by the travel and sense personal experiences of the
society being spearheaded by Kendra Scott who happens to be
the CEO (Leadership Analysis, 2017). Indeed, the organization
happens to be the true business with an Omni-channel model as
a premium retailers like the Bloomingdale, Nordstrom, and
Nieman Marcus, Von Maur together with more than 700 global
boutique specialists.
Kendra Scott VRIO Framework
According to scholars, the VRIO framework is discussed and
described as the worthy tool or component in evaluation of the
company’s internal environment. The word VRIO describes the
components or questions that need to be asked or considered
concerning the capacity or capability or resources applied in
Kendra Scott through potential capacity (Kendra Scott, 2017).
Kendra Scott has enough capacity for the organization in
exploiting the opportunities or environment in neutralizing the
threats that Kendra Scott is currently available. Kendra Scott
has enough resources in facing the advantages of cost in
developing the firm.
PEST Analysis
The main objective of PEST analysis is to clearly outline the
sociocultural, economic, legal, technological and legal factors
that impacts on the performance of Kendra Scott. Ideally, it
entails the external environment of the organization and it
operate.
The Analysis of Porters Four Corners.
Indeed, this is a very important tool that is applied in analyzing
the competitors since it highlights the main purpose of
competitive analysis and how it deserves to be applied.
Similarly, it describes the general insights of the organization in
the future. In this regard, the model is used in developing the
Kendra Scott profile including the probable strategic changes
that the competitors applies in the organization in becoming
successful. Besides, it evaluates on how the competitors
continue to react in the aspect of environmental changes and
industrial shifts that is prevalent.
Kendra Scott competitors have applied a quite straightforward
strategy that stalks from their motivation in over-performance
and exceeding the various objectives and public relation
actions. On the other hand, the competitors have applied these
objectives in establishing their capabilities including the
individual skills of the employees and the senior management.
Accordingly, it remains important to develop the clear
assumptions on the parameters of the networks and relationships
that has been developed by the businesses (Kendra Scott, 2017).
For example, Kendra Scott has remained to be successful than
the competitors due to the extreme consciousness in the brand.
This is an indication that the organization’s senior management
strength, financial stability has proved to be able to serve the
various channels within the organization through the
implementation and creation of a proper strategy in winning.
Value Chain Analysis
According to the description, this concept is based from the fact
that the company is there to create value for the clients.
Additionally, this is a very unique analysis technique that could
be utilized by Kendra Scott as a way of competitive advantage.
Tentatively, Kendra Scott business activities aer categorized
into various parts aimed at adding value to the company. Kendra
Scott could the activities well through the internal capacities
through examination and identification of all these activities.
Essentially, Kendra Scott run the various activities separately
aimed at offering after sales services, customer satisfaction
through the provision of these services. The vast research
indicates that the organization has invested heavily in terms of
research and development of the products that presently exist.
However, the organization needs to invest more in entering the
new markets. Initially, the organization shall need to research
more into their available products and assess the perforating
market.
Normally, the strategic analysis encompasses the evaluation of
the social environment. The social environment is comprised of
the political legal factors, technological, sociocultural and the
economic situations (Kendra Scott, 2017). The other factors are
the analysis of interest groups, analysis of the suppliers,
analysis of the government, analysis of the suppliers, and the
analysis of the, market. The strategic analysis is also referred as
the macro environmental factors that have vastly been discussed
in the SWOT analysis below. The paper has identified and
captured the Threats and Opportunities available (Leadership
Analysis, 2017). Externally, the organization has not suffered
any lawsuits that is outstanding neither has it impacted the
organization. However, the organization has leveraged the law
through the intellectual property protection laws through
patents. There is also the regulations from the government
through international, local, state and federal laws.
The strategic evaluation of the organization is based on the
potential threats that the organization is facing at the moment.
For instance there is the entry of a number of competitors that
are charging their products at a low price. Secondly, there is the
increase of substitute products sales while this continues to
slow the amount of growth in the market. The strategic analysis
encompasses the macroeconomic level that includes the
economics, demographics, political/legal, technology, and
social factors (Kendra Scott, 2017). The demographics of the
organization targets the youths mostly females who are aged
between the years 21 to 32 that are in colleges with income of
around $54,000 who are located in the upper Urban Centers or
Cities. The ethnic diversity are the Asians and the Whites who
are employed professionally (Kendra Scott, 2017). The
organization has set up a plan and an initiative that has
generated an application for the phones that allows the
organization’s customers to have entree globally everywhere for
the stores. Besides, the application shall also offer the
customers with links for the products (Leadership Analysis,
2017). There will be a new features for the applications store
that is innovative and creative exclusively. The application has
been developed by the Amadeus Group with great satisfaction
for the customers with satisfaction rate of more than 95%. The
Kendra Scott application together with the target market will
favor the users of iPhones.
The jewelry market has significantly adorned for the individuals
to portray their beauty. The jewelry market has accounted for
more than 34% sales of the accessories. Generally, the
organization’s jewelry accounts for around 25% of the general
market for the jewelries. However, this percentage seeks to
grow at a rate of 45% annually by 2022 (Kendra Scott, 2017).
The rate is expected to increase at a slow rate but there is a
growing amount of the younger generations demographically
that views self-realization and self-expression for the jewelry
brands. The overall market for the watch and jewelry market in
the United States stands at $81 billion as per the year 2014
(Leadership Analysis, 2017). This is a rate of 1.7% sales
increase from the years before. Normally, the amount spent by
the households in jewelry is $770 in watches and jewelry.
According to the latest reports, the highest spenders on jewelry
are the married individuals aged between 53v and 69 that live in
the Midwest Urban regions with a small population. These are
the professionals and managers working and have a spouse.
Normally, their income is $140,000 and more. These individuals
have mortgages and own a home. With an increase in income
there is more expenditure on jewelry. The highest spenders are
the individuals aged between 30s and 50s to 65 years (Kendra
Scott, 2017). The correlation of these relationship with income
increases as the spending on jewelry increases. In social media
has adopted great applications and services on Instagram with
the brand that has likely catch with great competitors and
maintain a high status that is trending at the moments
(Leadership Analysis, 2017). The organization aims at
remaining at the top and stay ahead.
Demographics
The spending of the consumers have been great as the number
of buyers at the age of 25 to 61 continue to increase. The main
factor is the level of e-commerce making the organization attain
an increase in revenue to a staggering $402 million. Notably,
this is due to the increase in internet users from the upcoming
markets in China and India. The increase in the commerce and
the internet users virtually leading to the increased sales
(Kendra Scott, 2017). The industry currently stands to be a $80
billion industry a time that the customers are interested in
purchasing fine products online. The products are in comparison
with the competitor’s as they become customized with the
market trends favoring the women’s and the minors (Leadership
Analysis, 2017). The challenges facing the organization
encompasses the demographics, social, international, political
or legal tussles and the economy level of the country.
Market Analysis
The market economies have witnessed a slow growth over the
recent pas but the trend is supposed to increase in the next five
years. The international economy has responded well with an
increase in the number of buyers including the regional market
segments. The currency rate have not been favorable for the
organization as there has been a destabilized rate. Besides, there
is also an increase in the number of disposable income, as the
company rate of dependence has increased (Leadership
Analysis, 2017). Nonetheless, this rate is expected to remain
static in the coming years. Also, there has been an increase in
the demand as the number of buyers significantly increase. The
cost of production for the jewelry has significantly remained
low allowing the organization to witness great profit margin.
As a brand, the organization continues to dream big as a brand,
inspired design, colorfully confidence the organization has
encouraged the staffs to work as a family, philanthropy, and
fashion. Therefore, the company continues to value the
employees as the soul and heart of the brand. Presently, the
organization boasts of more than 2,000 employees that are the
source of the company's success. The employees are innovative
of the new state of the art design facilities that have encouraged
the growth and culture of the company. The company offers the
members of staff some parental leave, great bonuses among
other benefits.
Kendra Scott Operations
The company is headed by a Board of Directors and in
LifeWorks board from the year 2012. After being launched, the
organization has grown the sales volume to more than $80
million worth of sales as the pioneer of the corporation being
spotted with great public figures like Gwyneth Paltrow, Fey
Tina, and Reese Witherspoon. Indeed, the operations at the then
organization have seen it growing aggressively with the urge of
pursuing commercial contracts from the larger stores. The
management at the organization has incessantly practiced more
excellent and superior management skills in the organization.
The operations of the organization are based on confidence in
doing a better job (Leadership Analysis, 2017). The operations
are based on value based on effectiveness and value-based
relationship. One of the major structures implemented by the
organization incorporates a good policy on training whereby the
workers go more than customer service. For instance, the
employees are encouraged to learn and be more passionate and
diligent at their work.
Conclusion
Kendra scot happens to be a very in a very competitive industry
and with great value including the sales turnover. The
organization is estimated to be many millions. Besides, the
company has attained great number of sales as well as customer
satisfaction across the globe and in America. Now, the
organization is considering franchising some of its activities.
Nevertheless, the company needs to be cautious since they are
concentrating on the market while they are not attaining self-
satisfaction from the market. Therefore, the organization is now
targeting more followers and clients. Through the adaptation of
research in the market, the organization shall now build up more
developed products for the customers that offers more support
from the clients for success. In conclusion, the strategic
analysis structure of Kendra Scott has proved that the primary
reason for the organization success is the management structure
that has been implemented in the organization (Kendra Scott,
2017).
Kendra Scott Company External Analysis
External Analysis
Normally, the external analysis encompasses the evaluation of
the social environment. The social environment is comprised of
the political legal factors, technological, sociocultural and the
economic situations (Kendra Scott, 2017). The other factors are
the analysis of interest groups, analysis of the suppliers,
analysis of the government, analysis of the suppliers, and the
analysis of the, market. The external analysis is also referred as
the macro environmental factors that have vastly been discussed
in the SWOT analysis below. The paper has identified and
captured the Threats and Opportunities available (Leadership
Analysis, 2017). Externally, the organization has not suffered
any lawsuits that is outstanding neither has it impacted the
organization. However, the organization has leveraged the law
through the intellectual property protection laws through
patents. There is also the regulations from the government
through international, local, state and federal laws.
The external evaluation of the organization is based on the
potential threats that the organization is facing at the moment.
For instance there is the entry of a number of competitors that
are charging their products at a low price. Secondly, there is the
increase of substitute products sales while this continues to
slow the amount of growth in the market. The external analysis
encompasses the macroeconomic level that includes the
economics, demographics, political/legal, technology, and
social factors. The demographics of the organization targets the
youths mostly females who are aged between the years 21 to 32
that are in colleges with income of around $54,000 who are
located in the upper Urban Centers or Cities. The ethnic
diversity are the Asians and the Whites who are employed
professionally (Kendra Scott, 2017). The organization has set
up a plan and an initiative that has generated an application for
the phones that allows the organization’s customers to have
entree globally everywhere for the stores. Besides, the
application shall also offer the customers with links for the
products (Leadership Analysis, 2017). There will be a new
features for the applications store that is innovative and creative
exclusively. The application has been developed by the
Amadeus Group with great satisfaction for the customers with
satisfaction rate of more than 95%. The Kendra Scott
application together with the target market will favor the users
of iPhones.
The jewelry market has significantly adorned for the individuals
to portray their beauty. The jewelry market has accounted for
more than 34% sales of the accessories. Generally, the
organization’s jewelry accounts for around 25% of the general
market for the jewelries. However, this percentage seeks to
grow at a rate of 45% annually by 2022 (Kendra Scott, 2017).
The rate is expected to increase at a slow rate but there is a
growing amount of the younger generations demographically
that views self-realization and self-expression for the jewelry
brands. The overall market for the watch and jewelry market in
the United States stands at $81 billion as per the year 2014
(Leadership Analysis, 2017). This is a rate of 1.7% sales
increase from the years before. Normally, the amount spent by
the households in jewelry is $770 in watches and jewelry.
According to the latest reports, the highest spenders on jewelry
are the married individuals aged between 53v and 69 that live in
the Midwest Urban regions with a small population. These are
the professionals and managers working and have a spouse.
Normally, their income is $140,000 and more. These individuals
have mortgages and own a home. With an increase in income
there is more expenditure on jewelry. The highest spenders are
the individuals aged between 30s and 50s to 65 years (Kendra
Scott, 2017). The correlation of these relationship with income
increases as the spending on jewelry increases. In social media
has adopted great applications and services on Instagram with
the brand that has likely catch with great competitors and
maintain a high status that is trending at the moments
(Leadership Analysis, 2017). The organization aims at
remaining at the top and stay ahead.
Economic Analysis
The market economies have witnessed a slow growth over the
recent pas but the trend is supposed to increase in the next five
years. The international economy has responded well with an
increase in the number of buyers including the regional market
segments. The currency rate have not been favorable for the
organization as there has been a destabilized rates. Besides,
there is also an increase in the number of disposable income as
the company rate of dependence has increased (Leadership
Analysis, 2017). Nonetheless, this rate is expected to remain
static in the coming years. Also, there has been an increase in
the demand as the number of buyers significantly increase. The
cost of production for the jewelry has significantly remained
low allowing the organization to witness great profit margin.
Demographics
The spending of the consumers have been great as the number
of buyers at the age of 25 to 61 continue to increase. The main
factor is the level of e-commerce making the organization attain
an increase in revenue to a staggering $402 million. Notably,
this is due to the increase in internet users from the upcoming
markets in China and India. The increase in the commerce and
the internet users virtually leading to the increased sales
(Kendra Scott, 2017). The industry currently stands to be a $80
billion industry a time that the customers are interested in
purchasing fine products online. The products are in comparison
with the competitor’s as they become customized with the
market trends favoring the women’s and the minors (Leadership
Analysis, 2017). The challenges facing the organization
encompasses the demographics, social, international, political
or legal tussles and the economy level of the country.
Kendra Scott Organization
Currently, the company boasts of 2000 employees while the
Berkshire Partners recapitalize the capital base. Indeed, the
company has practiced a Non-traditional retailing strategy that
has enabled for its success. Apparently, Kendra Scott started the
business with just $500 in one of her bedrooms (Kendra Scott,
2017). Initially, she was moving from one door to another while
selling jewelry that included bracelets, earrings, rings, and
necklaces. Slowly by slowly the business empire rapidly
increased and grow
Kendra Scott happens to be one of the leading brands in the
fashion accessories. The company happens to be inspired and
motivated by the travel and sense personal experiences of the
society being spearheaded by Kendra Scott who happens to be
the CEO (Leadership Analysis, 2017). Indeed, the organization
happens to be the true business with an Omni-channel model as
a premium retailers like the Bloomingdale, Nordstrom, and
Nieman Marcus, Von Maur together with more than 700 global
boutique specialists.
. The company is on the verge of expanding internationally with
more locations that are physical across the globe. Despite the
physical stores, the company has also established the great
online presence. One of the most outstanding components of the
business is the giving back to the community initiative (Kendra
Scott, 2017). Through the aspect of giving back, the
organization has given back to the community close to $1
million including $60,000 jewelry pieces to more than 900
organizations.
Kendra Scott boasts of the thriving corporation with more than
80 retail stores stand alone in the country of America (Kendra
Scott, 2017). Indeed, Kendra Scott remains to be famous due to
it as the comprehensive collection of the jewelry designed in an
elegant manner including the categories of lifestyles like the
fine jewelry, home accessories, and beauty products. Indeed, the
brand has consistently remained innovative in providing
customized products due to the available experience at Kendra
Scott stores. The company was established in the year 2002, and
its headquarters is based in Texas, Austin.
SWOT ANALYSIS
· Threats
The market currently faces competitors that sell their products
at a cost that is low. There is also an increase in the products
that are substitutes. The mark growth is slow, there is also an
adverse shift in the rates of foreign exchanges due to the
government initiated foreign policies. Besides, there is an
increase in the regulatory requirements that is very costly.
There is an increase and vulnerability of the cycles of business.
The powers of the customers and the suppliers have witnessed a
growth in bargains (Kendra Scott, 2017). This comes at a time
that the needs and tastes of the buyers change continuously
together with other changes in demographics.
There is great competition in the breaded necklace industry.
Presently, very many women are participating in the industry as
they sell the Etsy through various mobile phone applications
and sites of the social media. Another threat is the number of
great companies dealing with jewelry. An example of such
countries includes Dot and Stells (Kendra Scott, 2017). These
corporations have started constructing long necklaces that are
handmade. This has made it more popular with great fun base
and the customers.
· Opportunities:
Kendra Scott has a continuously served the customer groups
that are additional. Besides, there is new segments and markets
with an expansion of the like products that continuously seek to
broaden and expand the needs of the customers and there is also
the diversification of the products that the company offers
(Leadership Analysis, 2017). Likewise, the organization has
continuously discovered new technologies.
Also, the company is in the process of forming a vertical
integration. There is also trade barriers that are falling and they
are also attractive in the markets that are foreign. The rival
firms have indicated a complacency and there is also a faster
rate of the growth in the markets (Kendra Scott, 2017). The
company has socially integrated with the consumers as it
represent part of the cultures. The products also integrate with
products that initiate memories of childhood. Indeed, this forms
an integral part and section of the practices in business, the
organization is also involved in initiatives that are charitable
(Leadership Analysis, 2017). The organization recently initiated
a golf tournament.
The organization has a Make-A-Wish foundation that is aimed
at the organization apportioning part of their income there. The
aspect of donation is indeed a huge advantage for the
organization. The other opportunity is the market. There is a
great opportunity for the organization to reach out to very many
customers in a large area for instance in Houston, Norman and
Fort Worth (Leadership Analysis, 2017).
· Weaknesses
There is an increase in the level of competition and the amount
of sales as they continue eat on the market share. There is an
increase in the amount competitors eating in the share of the
market. The currency exchange rates has not been favorable not
forgetting the differences in culture and the level of economies
that has witnessed a slow growth.
The new to Sell: Both Lexie and Katie have never sold jewels
before in that great mass scale (Leadership Analysis, 2017). The
two have created for families and friends that they have never
practiced it at a larger scale. The two do not have the great
experience in setting up the store and shops (Kendra Scott,
2017).
Location: despite the fact that they have been into many cities
they have a challenge in meeting, ship the necklaces, and make
the customers available or meeting due to accessibility.
· Strengths
Technology: The Company has invested enormously in
development and research that has witnessed the emergence of
new and latest technologies. This is a very important factor for
the industry and the business. The company has also initiated
new ways aimed at liberating and leveraging technologies.
These efforts have enabled the organization to attain a cycle
time for products that are not new (Leadership Analysis, 2017).
Besides, the users of internet have increased and this has
enabled the organization to attain maximum sales. The patents
and regulations have decreased over the past years allowing the
organization to penetrate in dynamic markets.
Uniqueness and Style: The products like the necklaces are
manufactured from the various types of lengths, ornaments,
beading styles, and beads. Furthermore, the various types of
varieties that the necklaces are composed of with great talents
in the jewelry creation. There exist no identical necklaces since
they stand out from the competitors that might be selling these
same products.
· Experience
For a very long time, Lexie and Katie have been constructing
jewels. This has enabled them to be more confident, creative
and efficient. The two have made several types of necklaces and
the knowledge how to pull together the various ornaments in the
strands. This knowledge on how to assemble the jewelry makes
them have the capacity of making any necklaces that accounts
as great advantage in customization (Leadership Analysis,
2017).
· Price:
The directors had great access to the boutique wholesales of the
beads. They are able to purchase the beads at a price that is less
expensive, so this is what drives the organization into making
many profits.
Conclusion
In conclusion, the external analysis structure of Kendra Scott
has proved that the primary reason for the organization success
is the management structure that has been implemented in the
organization (Kendra Scott, 2017). The organization has
established proper marketing tools blended with the innovation
that is in the organization of mix and color this is done by the
design team of the organization (Leadership Analysis, 2017).
Indeed, for the internal structure of the organization, one can
judge that passion to something leads to greater heights of
achievements.
Kandra Scott Company Middle East Analysis
Introduction
The purpose for this paper is to highlight the success of the
strategic development applied by Kendra Scott (Middle East)
and how the strategies have been applied well in the
organization especially in the Middle East countries like
Bahrain and Saudi Arabia. The Middle East market is a god
market since majority of the population are wealthy.
Furthermore, the Arab community has the tendency of spending
much on jewelry and luxuries. This provides a very good market
for the products. The paper shall discuss how the company has
applied PESTLE and VRIO frameworks in these countries. In
order to attract a proper portrait, the paper shall utilize proper
information from the well sources and apply them in answering
the questions from the intelligent integrative way. The main
purpose of this paper entails providing an explanation of the
importance of strategic development in Kendra Scott Middle
East Market. Besides, the paper shall also explain and identify
the tools and methodologies of Kendra Scott strategic
development in the examination of the organization external and
Middle East marketing structure environments.
Figure 1: Middle East Gold Market. Source: www.google.com
Kandra Scott has developed be one of the leading brands in the
fashion accessories that sells in the Saudi Arabian and Bahrain
markets. The company happens to be inspired and motivated by
the travel and sense personal experiences of the society being
spearheaded by Kandra Scott who happens to be the CEO.
Indeed, the organization happens to be the true business with an
Omni-channel model as a premium retailers like the
Bloomingdale, Nordstrom, and Nieman Marcus, Von Maur
together with more than 700 global boutique specialists. Kendra
Scott boasts of the thriving corporation with more than 80 retail
stores stand alone in the country of America (Kendra Scott,
2017).
Kendra Scott boasts of the thriving corporation with more than
80 retail stores stand alone in the country of America and the
Middle East (Kendra Scott, 2017). Indeed, Kendra Scott remains
to be famous due to it as the comprehensive collection of the
jewelry designed in an elegant manner including the categories
of lifestyles like the fine jewelry, home accessories, and beauty
products. Indeed, the brand has consistently remained
innovative in providing customized products due to the
available experience at Kendra Scott stores. The company was
established in the year 2002, and its headquarters is based in
Texas, Austin.
Indeed, Kandra Scott remains to be famous in Middle East due
to it as the comprehensive collection of the jewelry designed in
an elegant manner including the categories of lifestyles like the
fine jewelry, home accessories, and beauty products. Indeed, the
brand has consistently remained innovative in providing
customized products due to the available experience at Kendra
Scott stores. The company was established in the year 2002, and
its headquarters is based in Texas, Austin. Currently, the
company boasts of 2000 employees while the Berkshire Partners
recapitalize the capital base. Indeed, the company has practiced
a Non-traditional retailing strategy that has enabled for its
success. Apparently, Kandra Scott started the business with just
$500 in one of her bedrooms (Kendra Scott, 2017). Initially, she
was moving from one door to another while selling jewelry that
included bracelets, earrings, rings, and necklaces. Slowly by
slowly the business empire rapidly increased and grow. The
company is on the verge of expanding internationally with more
locations that are physical across the globe. Despite the
physical stores, the company has also established the great
online presence. One of the most outstanding components of the
business is the giving back to the community initiative (Kendra
Scott, 2017). Through the aspect of giving back, the
organization has given back to the community close to $1
million including $60,000 jewelry pieces to more than 900
organizations.
According to scholars, the Middle East framework is discussed
and described as the worthy tool or component in evaluation of
the company’s internal environment. The word VRIO describes
the components or questions that need to be asked or considered
concerning the capacity or capability or resources applied in
Kendra Scott through potential capacity (Kendra Scott, 2017).
Kendra Scott has enough capacity for the organization in
exploiting the opportunities or environment in neutralizing the
threats that Kendra Scott is currently available. Kendra Scott
has enough resources in facing the advantages of cost in
developing the firm
Bahrain Middle East and Saudi Arabian Markets
. The company is on the verge of expanding internationally
across these Middle East countries with more locations that are
physical across the globe. Despite the physical stores, the
company has also established the great online presence in
Middle East. One of the most outstanding components of the
business is the giving back to the community initiative for the
Arabs (Kendra Scott, 2017). Through the aspect of giving back,
the organization has given back to the community close to $1
million including $60,000 jewelry pieces to more than 900
organizations.
The market Middle East economies have witnessed a slow
growth over the recent pas but the trend is supposed to increase
in the next five years. The international economy has responded
well with an increase in the number of buyers including the
regional market segments. The currency rate have not been
favorable for the organization as there has been a destabilized
rate. Besides, there is also an increase in the number of
disposable income, as the company rate of dependence has
increased (Leadership Analysis, 2017). Nonetheless, this rate is
expected to remain static in the coming years. Also, there has
been an increase in the demand as the number of buyers
significantly increase. The cost of production for the jewelry
has significantly remained low allowing the organization to
witness great profit margin.
As a brand, the organization continues to dream big as a brand,
inspired design, colorfully confidence the organization has
encouraged the staffs to work as a family, philanthropy, and
fashion. Therefore, the company continues to value the
employees as the soul and heart of the brand. Presently, the
organization boasts of more than 2,000 employees that are the
source of the company's success. The employees are innovative
of the new state of the art design facilities that have encouraged
the growth and culture of the company. The company offers the
members of staff some parental leave, great bonuses among
other benefits.
Figure 2: A Shopkeeper selling gold to Arabs. Source:
www.google.com
Currently, the company boasts of 2000 employees while the
Berkshire Partners recapitalize the capital base. Indeed, the
company has practiced a Non-traditional retailing strategy that
has enabled for its success. Apparently, Kendra Scott started the
business with just $500 in one of her bedrooms (Kendra Scott,
2017). Initially, she was moving from one door to another while
selling jewelry that included bracelets, earrings, rings, and
necklaces. Slowly by slowly the business empire rapidly
increased and grow.
Kendra Scott happens to be one of the leading brands in the
fashion accessories in the Middle East. The company happens to
be inspired and motivated by the travel and sense personal
experiences of the society being spearheaded by Kendra Scott
who happens to be the CEO (Leadership Analysis, 2017).
Indeed, the organization happens to be the true business with an
Omni-channel model as a premium retailers like the
Bloomingdale, Nordstrom, and Nieman Marcus, Von Maur
together with more than 700 global boutique specialists.
Financially, the company has been performing well over the last
number of years. Over the past five years, the company’s
revenue trend has been increasing at a margin of 7.1%.
Currently, the annual revenue for the company stands at
$180,000 as at 2016. As at 2016, the growth in gross profits for
the organization was 12%. The inventory turnover for the
organization was 23.6% while the Fixed Assets Turnover for the
organization was 8.1%. For the profitability ratios, the
organization has performed well (Kendra Scott, 2017). This is
an indication that indeed, the corporation is geared towards
attaining success. For the profit margin, the organization has
established at a percentage of 2%. On the same note, the returns
on the shareholder's equity remain at 8.2%. The dividend payout
ratio remains at -2.0%. For the liquidity ratio, the current ratio
stands at 1.31 while the quick ratio remains at 0.57. The
solvency ratio is evaluated by the Debt to Total Assets ratio that
is 0.71; the Time Interest Earned remains 32.4 while the Times
interest earned cash is 41.4 (Kendra Scott, 2017). From the
financial strategic development indicates the incomes for the
consumers have increased causing the consumers to continue
spending more. The household income for those that earn more
than $150k continues to spend more than 2.1% of their earnings
in jewelry. Indeed, the consumer’s purchasing power has
increased due to the consumer’s income. Out of the spending’s
Jewelry accounted for 34%, the spending’s on handbags is 30%,
Sunglasses 6%, watches 7%, hosiery 125, watches 6%.
Kendra Scott Strategic Middle East Market Analysis
As a brand, the organization continues to dream big as a brand,
inspired design, colorfully confidence the organization has
encouraged the staffs to work as a family, philanthropy, and
fashion. Therefore, the company continues to value the
employees as the soul and heart of the brand. Presently, the
organization boasts of more than 2,000 employees that are the
source of the company's success. The employees are innovative
of the new state of the art design facilities that have encouraged
the growth and culture of the company. The company offers the
members of staff some parental leave, great bonuses among
other benefits.
The company is headed by a Board of Directors and in
LifeWorks board from the year 2012. After being launched, the
organization has grown the sales volume to more than $80
million worth of sales as the pioneer of the corporation being
spotted with great public figures like Gwyneth Paltrow, Fey
Tina, and Reese Witherspoon. Indeed, the operations at the then
organization have seen it growing aggressively with the urge of
pursuing commercial contracts from the larger stores. The
management at the organization has incessantly practiced more
excellent and superior management skills in the organization.
The operations of the organization are based on confidence in
doing a better job (Leadership Analysis, 2017). The operations
are based on value based on effectiveness and value-based
relationship. One of the major structures implemented by the
organization incorporates a good policy on training whereby the
workers go more than customer service. For instance, the
employees are encouraged to learn and be more passionate and
diligent at their work.
Kendra Scott Middle East Marketing
The organization markets through the concept of the open-sale
idea that has the presence of a Color Bar in the Middle East
nations. In this regards, the associates are trained in making
good jewelry. Ideally, the organization has opened several
stores countrywide and other locations (Leadership Analysis,
2017). This has enabled the organization to increase its brand
presence as it gains more customers. Several celebrities have
also embraced the [products offered from the various stores and
this acts as a great milestone for the organization. As a brand,
the company continues to produce great staffs that later
advertised through the various media platforms like the
websites and magazines (Leadership Analysis, 2017). Another
marketing tool implemented by Kendra Scott is the aspect of
giving back to the community. In this regard, they are
considered to be very passionate and generous indeed. The
home collections for the products remain not to be like any
other in the market. The products designed and produced in a
large scale of stones that are genuine including shells. After,
they are paired with great jewelry customer details that are
stored as pieces.
Kendra Scott Middle East Organization Structure
The organizational structure continues to expect great
dedication from the members of staffs. The organization
practices a form of Product based organization structure and a
functional organization structures. In essence, the organization
focusses on the organization structure and the functions are
concentrating on the specific areas and specializations. As it is
evident, these companies apply this type of the various
structures that they want to organize its operations in the
various employee groupings, departments, skills shared, sales
and marketing, knowledge. The other structures that are based
on the various products of the organization of the lines and the
products of the company. As a retail store, the store is typically
established in the local structure that is available in the various
cities. This structure is differentiated in the different locations
that create the different departments like in finance, operations,
and marketing. The organization is led by a Board of Directors
that are then assisted by the Branch managers and the product
managers then the department heads like the Finance,
marketing, and product managers.
Conclusion
In conclusion, the Middle East marketing structure of Kendra
Scott has proved that the primary reason for the organization
success is the management structure that has been implemented
in the organization as a brand and financial growth (Leadership
Analysis, 2017). The organization has established proper
marketing tools blended with the innovation that is in the
organization of mix and color this is done by the design team of
the organization. Indeed, for the Middle East marketing
structure of the organization, one can judge that passion to
something leads to greater heights of achievements. The case of
$500 to a $250 million empire is the real testimony to true
success.
References
"Kendra Scott | Shop Jewelry For Women, Home Décor And
Beauty". Kendrascott.Com, 2017, http://www.kendrascott.com/.
"Kendra Scott Jewelry Store Prompts Homecoming For
Designer". Milwaukee Journal Sentinel, 2017,
http://www.jsonline.com/story/money/business/retail/2017/04/1
4/kendra-scott-jewelry-store-prompts-homecoming-
designer/100484486/.
"Leadership Analysis: Kendra Scott & The Entrepreneurial
Spirit On Seelio". Seelio, 2017,
https://seelio.com/w/1eoy/leadership-analysis-kendra-scott-the-
entrepreneurial-spirit.
"What Is Organizational Structure Of Management? - Types &
Examples - Video & Lesson Transcript |
Study.Com". Study.Com, 2017,
http://study.com/academy/lesson/what-is-organizational-
structure-of-management-types-examples-quiz.html.
References
"Kendra Scott | Shop Jewelry For Women, Home Décor And
Beauty". Kendrascott.Com, 2017, http://www.kendrascott.com/.
"Kendra Scott Jewelry Store Prompts Homecoming For
Designer". Milwaukee Journal Sentinel, 2017,
http://www.jsonline.com/story/money/business/retail/2017/04/1
4/kendra-scott-jewelry-store-prompts-homecoming-
designer/100484486/.
"Leadership Analysis: Kendra Scott & The Entrepreneurial
Spirit On Seelio". Seelio, 2017,
https://seelio.com/w/1eoy/leadership-analysis-kendra-scott-the-
entrepreneurial-spirit.
"What Is Organizational Structure Of Management? - Types &
Examples - Video & Lesson Transcript |
Study.Com". Study.Com, 2017,
http://study.com/academy/lesson/what-is-organizational-
structure-of-management-types-examples-quiz.html.
TCD #1 - DRAFT DUE - Title, Intro, Mission, References
This assignment should include the following:
Title Page - remember APA format (and Running head)
Table of Contents (see example in Blackboard; page numbers
are not required)
Introductory Paragraph
Thesis Statement: What are the key strategic issues you will be
examining?
Mission Statement (define mission statement and cite the
textbook),
References Page
Assignment Submission Information
General Instructions:
These assignments are for the Traditional (Big) Case only.
Each assignment is to be uploaded as a WORD document
only. (Do not write your assignment within Blackboard.)
You may submit your assignment at any time prior to the due
date -- either as you have it ready or on the actual due date
before 5pm.
Treat each submission as a stand-alone assignment. Do not
submit previous work with the current assignment, unless the
entire draft or final paper is due.
You will only have one opportunity for submission, so please
make sure what you are submitting is your best work and
includes appropriate citations and references.
Once the deadline has passed, you will not be able to submit
your assignment, so please do not wait until the last minute.
If you have any questions, please contact me before you submit
your assignment -- give plenty of time for a response so you do
not miss the submission deadline.
TCD
#1
-
DRAFT
DUE
-
Title,
Intro,
Mission,
References
This
assignm
ent
should
include
the
following
:
Title
Page
-
remember
APA
format
(and
Running
head
)
Table
of
Contents
(see
example
in
Blackboard;
page
numbers
are
not
required
)
Introductory
Paragrap
h
Thesis
Statement:
What
are
the
key
strategic
issues
yo
u
will
be
examining
?
Mission
Statement
(define
mission
statement
and
cite
the
textbook)
,
References
P
ag
e
Assignment
Submission
Informatio
n
General
Instructions
:
These assignments are for the Traditional (Big) Case only.
Each
assignment
is
to
be
uploaded
as
a
WORD
document
only.
(Do not write your assignment within
Blackboard.)
You may submit your assignment at any time prior to the due
date
--
either as you have it ready or on the actual due
date before 5pm.
Treat each submission as a stand
-
alone assignment. Do not submit previous work with the current
assignment,
unless the ent
ire draft or final paper is due.
You will only have
on
e
opportunity for submission, so please make sure what you are
submitting is your best work
and includes appropriate citations and references.
Once the deadline has passed, you will not be able to submi
t your assignment, so please do not wait until the last
minute.
If you have any questions, please contact me before you submit
your assignment
--
give plenty of time for a
response so you do not miss the submission deadline.
TCD #1 - DRAFT DUE - Title, Intro, Mission, References
This assignment should include the following:
Title Page - remember APA format (and Running head)
Table of Contents (see example in Blackboard; page numbers
are not required)
Introductory Paragraph
Thesis Statement: What are the key strategic issues you will be
examining?
Mission Statement (define mission statement and cite the
textbook),
References Page
Assignment Submission Information
General Instructions:
These assignments are for the Traditional (Big) Case only.
Each assignment is to be uploaded as a WORD document only.
(Do not write your assignment within
Blackboard.)
You may submit your assignment at any time prior to the due
date -- either as you have it ready or on the actual due
date before 5pm.
Treat each submission as a stand-alone assignment. Do not
submit previous work with the current assignment,
unless the entire draft or final paper is due.
You will only have one opportunity for submission, so please
make sure what you are submitting is your best work
and includes appropriate citations and references.
Once the deadline has passed, you will not be able to submit
your assignment, so please do not wait until the last
minute.
If you have any questions, please contact me before you submit
your assignment -- give plenty of time for a
response so you do not miss the submission deadline.
Running head: THE COCA-COLA COMPANY
1
The Coca Cola Company: An Strategic Analysis
Key Internal & External Environmental Factors and Strategic
Recommendations
First LastName
University of the Incarnate Word
THE COCA-COLA COMPANY
2
Table of Contents
Introduction………………….………..….…………………………
……………………………..4
Thesis
Statement……….…….………………………………………………
……………………4
Mission
Statement…………..…….….…….…………………………………
……………….......5
Vision……………………………..…………………………………
…………………….6
Core
Values………...………………………………………………………
……………...7
Executive
Leadership………………….…………………………………………
………………..7
The External
Environment…………………...…….………………………………
…………….10
Remote
Environment……..……………………………………………………
………...10
Economic
Factors………………………………………………………………...
10
Social
Factors…………………………………………………………………
….12
Political
Factors…………………………………………………………………
.15
Technological
Factors……………………………………………………………16
Ecological
Factors………………………………………………………………..
18
Operating
Environment…………………………………………………………
………..19
Competitors…………………………………………………………
……………20
Customers……………………………………………………………
…………..22
Industry
Environment…………………………………………………………
…………24
Industry
Analysis……………………………………………………………….
..25
Porter’s Five
Forces...……………………………………………………………25
The Internal
Environment………………………………………………...………
……………...31
THE COCA-COLA COMPANY
3
SWOT
Analysis…………………………………..…………………………
…………...31
Strengths………………………………………………………………
……...….31
Weaknesses…………………………………………………………
………....…34
Opportunities…………………………………………………………
…………..36
Threats………………………………………………………………
……………39
Core
Capabilities…………………………………………………………
………………41
Brand
Strength………………………………………………………………
…...41
Unique Distribution
System……………………………………………………...42
Comparison with Past Performance and
Competitors…………………………………...43
BCG
Matrix………….……………………………………………………
……………..47
Cash
Cows…………………………………………………………………
…….48
Stars……………………………………………………………………
…………48
Question
Marks………………………………………………………………….
.49
Dogs…………………………………………………………………
…………...50
Long-Term Objectives and
Strategies…………………………………………………………...5
0
Objective
#1………………………………………………………………………
……...51
Strategy
#1………………………………………………………………………
……….52
Objective
#2……………………………………………………………………..
……….55
Strategy
#2………………………………………………………………………
.………56
Objective
#3………………………………………………………………………
..…….58
Strategy
#3………………………………………………………………………
……….58
Conclusion……………………………………………………………
…………………….……59
References……………………………………………………………
…………………………..61

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Running head KANDRA SCOTT1KANDRA SCOTT 4.docx

  • 1. Running head: KANDRA SCOTT 1 KANDRA SCOTT 4 Kandra Scott Company Analysis Names Institution TABLE OF CONTENTS CHAPTER PAGE Kandra Scott Company Internal Analysis 3 SWOT Analysis 5 Kendra Scott Human Resource Analysis 7 Kendra Scott Operations 8 Kendra Scott Marketing 9 Kendra Scott Organization Structure 10 Kendra Scott Organization Background 11 Kendra Scott VRIO Framework 13 External Analysis 19 SWOT Analysis 23 Kandra Scott Company Middle East Analysis 27 Bahrain Middle East and Saudi Arabian Market 30
  • 2. Kendra Scott Strategic 35 Kendra Scott Middle East Organization Structure 37 Conclusion 40 References 41 Kandra Scott Company Internal Analysis Introduction Company Despription Kendra Scott company was established in the year 2002, and its headquarters is based in Texas, Austin. Currently, the company boasts of 2000 employees while the Berkshire Partners recapitalize the capital base. Indeed, the company has practiced a Non-traditional retailing strategy that has enabled for its success. Apparently, Kandra Scott started the business with just $500 in one of her bedrooms (Kendra Scott, 2017). Initially, she was moving from one door to another while selling jewelry that included bracelets, earrings, rings, and necklaces. Slowly by slowly the business empire rapidly increased and grow. The company is on the verge of expanding internationally with more locations that are physical across the globe. Despite the physical stores, the company has also established the great online presence. One of the most outstanding components of the business is the giving back to the community initiative (Kendra Scott, 2017). Through the aspect of giving back, the organization has given back to the community close to $1 million including $60,000 jewelry pieces to more than 900 organizations. Kandra Scott happens to be one of the leading brands in the fashion accessories. The company happens to be inspired and motivated by the travel and sense personal experiences of the society being spearheaded by Kandra Scott who happens to be the CEO. Indeed, the organization happens to be the true business with an Omni-channel model as a premium retailers like the Bloomingdale, Nordstrom, and Nieman Marcus, Von Maur together with more than 700 global boutique specialists.
  • 3. Kendra Scott boasts of the thriving corporation with more than 80 retail stores stand alone in the country of America (Kendra Scott, 2017). Indeed, Kandra Scott remains to be famous due to it as the comprehensive collection of the jewelry designed in an elegant manner including the categories of lifestyles like the fine jewelry, home accessories, and beauty products. Indeed, the brand has consistently remained innovative in providing customized products due to the available experience at Kendra Scott stores. Internal Analysis Financially, the company has been performing well over the last number of years. Over the past five years, the company’s revenue trend has been increasing at a margin of 7.1%. Currently, the annual revenue for the company stands at $180,000 as at 2016. As at 2016, the growth in gross profits for the organization was 12%. The inventory turnover for the organization was 23.6% while the Fixed Assets Turnover for the organization was 8.1%. For the profitability ratios, the organization has performed well (Kendra Scott, 2017). This is an indication that indeed, the corporation is geared towards attaining success. For the profit margin, the organization has established at a percentage of 2%. On the same note, the returns on the shareholder's equity remain at 8.2%. The dividend payout ratio remains at -2.0%. For the liquidity ratio, the current ratio stands at 1.31 while the quick ratio remains at 0.57. The solvency ratio is evaluated by the Debt to Total Assets ratio that is 0.71; the Time Interest Earned remains 32.4 while the Times interest earned cash is 41.4 (Kendra Scott, 2017). From the financial analysis indicates the incomes for the consumers have increased causing the consumers to continue spending more. The household income for those that earn more than $150k continues to spend more than 2.1% of their earnings in jewelry. Indeed, the consumer’s purchasing power has increased due to the consumer’s income. Out of the spending’s Jewelry accounted for 34%, the spending’s on handbags is 30%, Sunglasses 6%, watches 7%, hosiery 125, watches 6%.
  • 4. SWOT ANALYSIS · Strengths Uniqueness and Style: The products like the necklaces are manufactured from the various types of lengths, ornaments, beading styles, and beads. Furthermore, the various types of varieties that the necklaces are composed of with great talents in the jewelry creation. There exist no identical necklaces since they stand out from the competitors that might be selling these same products. · Experience For a very long time, Lexie and Katie have been constructing jewels. This has enabled them to be more confident, creative and efficient. The two have made several types of necklaces and the knowledge how to pull together the various ornaments in the strands. This knowledge on how to assemble the jewelry makes them have the capacity of making any necklaces that accounts as great advantage in customization (Leadership Analysis, 2017). · Price: The directors had great access to the boutique wholesales of the beads. They are able to purchase the beads at a price that is less expensive, so this is what drives the organization into making many profits. · Weaknesses The new to Sell: Both Lexie and Katie have never sold jewels before in that great mass scale. The two have created for families and friends that they have never practiced it at a larger scale. The two do not have the great experience in setting up the store and shops (Kendra Scott, 2017). Location: despite the fact that they have been into many cities they have a challenge in meeting, ship the necklaces, make the customers available or meeting due to accessibility. · Opportunities: The organization has a Make-A-Wish foundation that is aimed at the organization apportioning part of their income there. The aspect of donation is indeed a huge advantage for the
  • 5. organization. The other opportunity is the market. There is a great opportunity for the organization to reach out to very many customers in a large area for instance in Houston, Norman and Fort Worth (Leadership Analysis, 2017). · Threats There is great competition in the breaded necklace industry. Presently, very many women are participating in the industry as they sell the Etsy through various mobile phone applications and sites of the social media. Another threat is the number of great companies dealing with jewelry. An example of such countries includes Dot and Stells. These corporations have started constructing long necklaces that are handmade. This has made it more popular with great fun base and the customers. Figure 1: Kendra Scott SWOT Analysis Kendra Scott Human Resource Analysis As a brand, the organization continues to dream big as a brand, inspired design, colorfully confidence the organization has encouraged the staffs to work as a family, philanthropy, and fashion. Therefore, the company continues to value the employees as the soul and heart of the brand. Presently, the organization boasts of more than 2,000 employees that are the source of the company's success. The employees are innovative of the new state of the art design facilities that have encouraged the growth and culture of the company. The company offers the members of staff some parental leave, great bonuses among other benefits. Kendra Scott Operations The company is headed by a Board of Directors and in LifeWorks board from the year 2012. After being launched, the organization has grown the sales volume to more than $80 million worth of sales as the pioneer of the corporation being spotted with great public figures like Gwyneth Paltrow, Fey Tina, and Reese Witherspoon. Indeed, the operations at the then organization have seen it growing aggressively with the urge of pursuing commercial contracts from the larger stores. The
  • 6. management at the organization has incessantly practiced more excellent and superior management skills in the organization. The operations of the organization are based on confidence in doing a better job (Leadership Analysis, 2017). The operations are based on value based on effectiveness and value-based relationship. One of the major structures implemented by the organization incorporates a good policy on training whereby the workers go more than customer service. For instance, the employees are encouraged to learn and be more passionate and diligent at their work. Kendra Scott Marketing The organization markets through the concept of the open-sale idea that has the presence of a Color Bar. In this regards, the associates are trained in making good jewelry. Ideally, the organization has opened several stores countrywide and other locations (Leadership Analysis, 2017). This has enabled the organization to increase its brand presence as it gains more customers. Several celebrities have also embraced the [products offered from the various stores and this acts as a great milestone for the organization. As a brand, the company continues to produce great staffs that later advertised through the various media platforms like the websites and magazines (Leadership Analysis, 2017). Another marketing tool implemented by Kendra Scott is the aspect of giving back to the community. In this regard, they are considered to be very passionate and generous indeed. The home collections for the products remain not to be like any other in the market. The products designed and produced in a large scale of stones that are genuine including shells. After, they are paired with great jewelry customer details that are stored as pieces. Kendra Scott Organization Structure The organizational structure continues to expect great dedication from the members of staffs. The organization practices a form of Product based organization structure and a functional organization structures. In essence, the organization focusses on the organization structure and the functions are
  • 7. concentrating on the specific areas and specializations. As it is evident, these companies apply this type of the various structures that they want to organize its operations in the various employee groupings, departments, skills shared, sales and marketing, knowledge. The other structures that are based on the various products of the organization of the lines and the products of the company. As a retail store, the store is typically established in the local structure that is available in the various cities. This structure is differentiated in the different locations that create the different departments like in finance, operations, and marketing. The organization is led by a Board of Directors that are then assisted by the Branch managers and the product managers then the department heads like the Finance, marketing, and product managers. Conclusion In conclusion, the internal structure of Kendra Scott has proved that the primary reason for the organization success is the management structure that has been implemented in the organization (Leadership Analysis, 2017). The organization has established proper marketing tools blended with the innovation that is in the organization of mix and color this is done by the design team of the organization. Indeed, for the internal structure of the organization, one can judge that passion to something leads to greater heights of achievements. The case of $500 to a $250 million empire is the real testimony to true success. The purpose for this part is to highlight the strategic analysis of Kendra Scott and how the strategies have been applied well in the organization. The paper shall discuss the PESTLE and VRIO frameworks. In order to attract a proper portrait, the paper shall utilize proper information from the well sources and apply them in answering the questions from the intelligent integrative way. The main purpose of this paper entails providing an explanation of the importance of strategic analysis in Kendra Scott. Besides, the paper shall also explain and identify the tools and
  • 8. methodologies of Kendra Scott strategic analysis in the examination of the organization external and internal environments. Strategic Analysis According to scholars, strategic analysis is an informed theory that examines the environment that a company is operating. Understanding the company’s interaction with the external and internal environments shall importantly improve how the company becomes efficient and effective through growth of Kendra Scott capacity in distributing and positioning the resources in the organization in a logical way. Therefore, strategic analysis stands to be an important part of strategic planning development. Accordingly, strategic analysis stands as an important part of the organization’s control program and evaluation within an organization as it offers the Directors and managers with an inclusive evaluation of the company’s capacity and factors within the market (Kendra Scott, 2017). Therefore, through this process the vulnerabilities and opportunities in the organization shall be established and ascertain the opportunities for growth. Currently, there exists several planning tools and strategic analysis that are present in assisting business environment analysis both external and internal encompassing the environment that is present. Some of the tools that are available in business analysis includes SWOT framework, PESTLE framework, VRIO framework, Porter’s Five, Value chain analysis. Kendra Scott Organization Background . The company is on the verge of expanding internationally with more locations that are physical across the globe. Despite the physical stores, the company has also established the great online presence. One of the most outstanding components of the business is the giving back to the community initiative (Kendra Scott, 2017). Through the aspect of giving back, the organization has given back to the community close to $1 million including $60,000 jewelry pieces to more than 900
  • 9. organizations. Currently, the company boasts of 2000 employees while the Berkshire Partners recapitalize the capital base. Indeed, the company has practiced a Non-traditional retailing strategy that has enabled for its success. Apparently, Kendra Scott started the business with just $500 in one of her bedrooms (Kendra Scott, 2017). Initially, she was moving from one door to another while selling jewelry that included bracelets, earrings, rings, and necklaces. Slowly by slowly the business empire rapidly increased and grow. Kendra Scott boasts of the thriving corporation with more than 80 retail stores stand alone in the country of America (Kendra Scott, 2017). Indeed, Kendra Scott remains to be famous due to it as the comprehensive collection of the jewelry designed in an elegant manner including the categories of lifestyles like the fine jewelry, home accessories, and beauty products. Indeed, the brand has consistently remained innovative in providing customized products due to the available experience at Kendra Scott stores. The company was established in the year 2002, and its headquarters is based in Texas, Austin. Kendra Scott happens to be one of the leading brands in the fashion accessories. The company happens to be inspired and motivated by the travel and sense personal experiences of the society being spearheaded by Kendra Scott who happens to be the CEO (Leadership Analysis, 2017). Indeed, the organization happens to be the true business with an Omni-channel model as a premium retailers like the Bloomingdale, Nordstrom, and Nieman Marcus, Von Maur together with more than 700 global boutique specialists. Kendra Scott VRIO Framework According to scholars, the VRIO framework is discussed and described as the worthy tool or component in evaluation of the company’s internal environment. The word VRIO describes the components or questions that need to be asked or considered concerning the capacity or capability or resources applied in Kendra Scott through potential capacity (Kendra Scott, 2017).
  • 10. Kendra Scott has enough capacity for the organization in exploiting the opportunities or environment in neutralizing the threats that Kendra Scott is currently available. Kendra Scott has enough resources in facing the advantages of cost in developing the firm. PEST Analysis The main objective of PEST analysis is to clearly outline the sociocultural, economic, legal, technological and legal factors that impacts on the performance of Kendra Scott. Ideally, it entails the external environment of the organization and it operate. The Analysis of Porters Four Corners. Indeed, this is a very important tool that is applied in analyzing the competitors since it highlights the main purpose of competitive analysis and how it deserves to be applied. Similarly, it describes the general insights of the organization in the future. In this regard, the model is used in developing the Kendra Scott profile including the probable strategic changes that the competitors applies in the organization in becoming successful. Besides, it evaluates on how the competitors continue to react in the aspect of environmental changes and industrial shifts that is prevalent. Kendra Scott competitors have applied a quite straightforward strategy that stalks from their motivation in over-performance and exceeding the various objectives and public relation actions. On the other hand, the competitors have applied these objectives in establishing their capabilities including the individual skills of the employees and the senior management. Accordingly, it remains important to develop the clear assumptions on the parameters of the networks and relationships that has been developed by the businesses (Kendra Scott, 2017). For example, Kendra Scott has remained to be successful than the competitors due to the extreme consciousness in the brand. This is an indication that the organization’s senior management strength, financial stability has proved to be able to serve the various channels within the organization through the
  • 11. implementation and creation of a proper strategy in winning. Value Chain Analysis According to the description, this concept is based from the fact that the company is there to create value for the clients. Additionally, this is a very unique analysis technique that could be utilized by Kendra Scott as a way of competitive advantage. Tentatively, Kendra Scott business activities aer categorized into various parts aimed at adding value to the company. Kendra Scott could the activities well through the internal capacities through examination and identification of all these activities. Essentially, Kendra Scott run the various activities separately aimed at offering after sales services, customer satisfaction through the provision of these services. The vast research indicates that the organization has invested heavily in terms of research and development of the products that presently exist. However, the organization needs to invest more in entering the new markets. Initially, the organization shall need to research more into their available products and assess the perforating market. Normally, the strategic analysis encompasses the evaluation of the social environment. The social environment is comprised of the political legal factors, technological, sociocultural and the economic situations (Kendra Scott, 2017). The other factors are the analysis of interest groups, analysis of the suppliers, analysis of the government, analysis of the suppliers, and the analysis of the, market. The strategic analysis is also referred as the macro environmental factors that have vastly been discussed in the SWOT analysis below. The paper has identified and captured the Threats and Opportunities available (Leadership Analysis, 2017). Externally, the organization has not suffered any lawsuits that is outstanding neither has it impacted the organization. However, the organization has leveraged the law through the intellectual property protection laws through patents. There is also the regulations from the government through international, local, state and federal laws. The strategic evaluation of the organization is based on the
  • 12. potential threats that the organization is facing at the moment. For instance there is the entry of a number of competitors that are charging their products at a low price. Secondly, there is the increase of substitute products sales while this continues to slow the amount of growth in the market. The strategic analysis encompasses the macroeconomic level that includes the economics, demographics, political/legal, technology, and social factors (Kendra Scott, 2017). The demographics of the organization targets the youths mostly females who are aged between the years 21 to 32 that are in colleges with income of around $54,000 who are located in the upper Urban Centers or Cities. The ethnic diversity are the Asians and the Whites who are employed professionally (Kendra Scott, 2017). The organization has set up a plan and an initiative that has generated an application for the phones that allows the organization’s customers to have entree globally everywhere for the stores. Besides, the application shall also offer the customers with links for the products (Leadership Analysis, 2017). There will be a new features for the applications store that is innovative and creative exclusively. The application has been developed by the Amadeus Group with great satisfaction for the customers with satisfaction rate of more than 95%. The Kendra Scott application together with the target market will favor the users of iPhones. The jewelry market has significantly adorned for the individuals to portray their beauty. The jewelry market has accounted for more than 34% sales of the accessories. Generally, the organization’s jewelry accounts for around 25% of the general market for the jewelries. However, this percentage seeks to grow at a rate of 45% annually by 2022 (Kendra Scott, 2017). The rate is expected to increase at a slow rate but there is a growing amount of the younger generations demographically that views self-realization and self-expression for the jewelry brands. The overall market for the watch and jewelry market in the United States stands at $81 billion as per the year 2014 (Leadership Analysis, 2017). This is a rate of 1.7% sales
  • 13. increase from the years before. Normally, the amount spent by the households in jewelry is $770 in watches and jewelry. According to the latest reports, the highest spenders on jewelry are the married individuals aged between 53v and 69 that live in the Midwest Urban regions with a small population. These are the professionals and managers working and have a spouse. Normally, their income is $140,000 and more. These individuals have mortgages and own a home. With an increase in income there is more expenditure on jewelry. The highest spenders are the individuals aged between 30s and 50s to 65 years (Kendra Scott, 2017). The correlation of these relationship with income increases as the spending on jewelry increases. In social media has adopted great applications and services on Instagram with the brand that has likely catch with great competitors and maintain a high status that is trending at the moments (Leadership Analysis, 2017). The organization aims at remaining at the top and stay ahead. Demographics The spending of the consumers have been great as the number of buyers at the age of 25 to 61 continue to increase. The main factor is the level of e-commerce making the organization attain an increase in revenue to a staggering $402 million. Notably, this is due to the increase in internet users from the upcoming markets in China and India. The increase in the commerce and the internet users virtually leading to the increased sales (Kendra Scott, 2017). The industry currently stands to be a $80 billion industry a time that the customers are interested in purchasing fine products online. The products are in comparison with the competitor’s as they become customized with the market trends favoring the women’s and the minors (Leadership Analysis, 2017). The challenges facing the organization encompasses the demographics, social, international, political or legal tussles and the economy level of the country. Market Analysis The market economies have witnessed a slow growth over the recent pas but the trend is supposed to increase in the next five
  • 14. years. The international economy has responded well with an increase in the number of buyers including the regional market segments. The currency rate have not been favorable for the organization as there has been a destabilized rate. Besides, there is also an increase in the number of disposable income, as the company rate of dependence has increased (Leadership Analysis, 2017). Nonetheless, this rate is expected to remain static in the coming years. Also, there has been an increase in the demand as the number of buyers significantly increase. The cost of production for the jewelry has significantly remained low allowing the organization to witness great profit margin. As a brand, the organization continues to dream big as a brand, inspired design, colorfully confidence the organization has encouraged the staffs to work as a family, philanthropy, and fashion. Therefore, the company continues to value the employees as the soul and heart of the brand. Presently, the organization boasts of more than 2,000 employees that are the source of the company's success. The employees are innovative of the new state of the art design facilities that have encouraged the growth and culture of the company. The company offers the members of staff some parental leave, great bonuses among other benefits. Kendra Scott Operations The company is headed by a Board of Directors and in LifeWorks board from the year 2012. After being launched, the organization has grown the sales volume to more than $80 million worth of sales as the pioneer of the corporation being spotted with great public figures like Gwyneth Paltrow, Fey Tina, and Reese Witherspoon. Indeed, the operations at the then organization have seen it growing aggressively with the urge of pursuing commercial contracts from the larger stores. The management at the organization has incessantly practiced more excellent and superior management skills in the organization. The operations of the organization are based on confidence in doing a better job (Leadership Analysis, 2017). The operations are based on value based on effectiveness and value-based
  • 15. relationship. One of the major structures implemented by the organization incorporates a good policy on training whereby the workers go more than customer service. For instance, the employees are encouraged to learn and be more passionate and diligent at their work. Conclusion Kendra scot happens to be a very in a very competitive industry and with great value including the sales turnover. The organization is estimated to be many millions. Besides, the company has attained great number of sales as well as customer satisfaction across the globe and in America. Now, the organization is considering franchising some of its activities. Nevertheless, the company needs to be cautious since they are concentrating on the market while they are not attaining self- satisfaction from the market. Therefore, the organization is now targeting more followers and clients. Through the adaptation of research in the market, the organization shall now build up more developed products for the customers that offers more support from the clients for success. In conclusion, the strategic analysis structure of Kendra Scott has proved that the primary reason for the organization success is the management structure that has been implemented in the organization (Kendra Scott, 2017). Kendra Scott Company External Analysis External Analysis Normally, the external analysis encompasses the evaluation of the social environment. The social environment is comprised of the political legal factors, technological, sociocultural and the economic situations (Kendra Scott, 2017). The other factors are the analysis of interest groups, analysis of the suppliers, analysis of the government, analysis of the suppliers, and the analysis of the, market. The external analysis is also referred as the macro environmental factors that have vastly been discussed in the SWOT analysis below. The paper has identified and captured the Threats and Opportunities available (Leadership
  • 16. Analysis, 2017). Externally, the organization has not suffered any lawsuits that is outstanding neither has it impacted the organization. However, the organization has leveraged the law through the intellectual property protection laws through patents. There is also the regulations from the government through international, local, state and federal laws. The external evaluation of the organization is based on the potential threats that the organization is facing at the moment. For instance there is the entry of a number of competitors that are charging their products at a low price. Secondly, there is the increase of substitute products sales while this continues to slow the amount of growth in the market. The external analysis encompasses the macroeconomic level that includes the economics, demographics, political/legal, technology, and social factors. The demographics of the organization targets the youths mostly females who are aged between the years 21 to 32 that are in colleges with income of around $54,000 who are located in the upper Urban Centers or Cities. The ethnic diversity are the Asians and the Whites who are employed professionally (Kendra Scott, 2017). The organization has set up a plan and an initiative that has generated an application for the phones that allows the organization’s customers to have entree globally everywhere for the stores. Besides, the application shall also offer the customers with links for the products (Leadership Analysis, 2017). There will be a new features for the applications store that is innovative and creative exclusively. The application has been developed by the Amadeus Group with great satisfaction for the customers with satisfaction rate of more than 95%. The Kendra Scott application together with the target market will favor the users of iPhones. The jewelry market has significantly adorned for the individuals to portray their beauty. The jewelry market has accounted for more than 34% sales of the accessories. Generally, the organization’s jewelry accounts for around 25% of the general market for the jewelries. However, this percentage seeks to
  • 17. grow at a rate of 45% annually by 2022 (Kendra Scott, 2017). The rate is expected to increase at a slow rate but there is a growing amount of the younger generations demographically that views self-realization and self-expression for the jewelry brands. The overall market for the watch and jewelry market in the United States stands at $81 billion as per the year 2014 (Leadership Analysis, 2017). This is a rate of 1.7% sales increase from the years before. Normally, the amount spent by the households in jewelry is $770 in watches and jewelry. According to the latest reports, the highest spenders on jewelry are the married individuals aged between 53v and 69 that live in the Midwest Urban regions with a small population. These are the professionals and managers working and have a spouse. Normally, their income is $140,000 and more. These individuals have mortgages and own a home. With an increase in income there is more expenditure on jewelry. The highest spenders are the individuals aged between 30s and 50s to 65 years (Kendra Scott, 2017). The correlation of these relationship with income increases as the spending on jewelry increases. In social media has adopted great applications and services on Instagram with the brand that has likely catch with great competitors and maintain a high status that is trending at the moments (Leadership Analysis, 2017). The organization aims at remaining at the top and stay ahead. Economic Analysis The market economies have witnessed a slow growth over the recent pas but the trend is supposed to increase in the next five years. The international economy has responded well with an increase in the number of buyers including the regional market segments. The currency rate have not been favorable for the organization as there has been a destabilized rates. Besides, there is also an increase in the number of disposable income as the company rate of dependence has increased (Leadership Analysis, 2017). Nonetheless, this rate is expected to remain static in the coming years. Also, there has been an increase in the demand as the number of buyers significantly increase. The
  • 18. cost of production for the jewelry has significantly remained low allowing the organization to witness great profit margin. Demographics The spending of the consumers have been great as the number of buyers at the age of 25 to 61 continue to increase. The main factor is the level of e-commerce making the organization attain an increase in revenue to a staggering $402 million. Notably, this is due to the increase in internet users from the upcoming markets in China and India. The increase in the commerce and the internet users virtually leading to the increased sales (Kendra Scott, 2017). The industry currently stands to be a $80 billion industry a time that the customers are interested in purchasing fine products online. The products are in comparison with the competitor’s as they become customized with the market trends favoring the women’s and the minors (Leadership Analysis, 2017). The challenges facing the organization encompasses the demographics, social, international, political or legal tussles and the economy level of the country. Kendra Scott Organization Currently, the company boasts of 2000 employees while the Berkshire Partners recapitalize the capital base. Indeed, the company has practiced a Non-traditional retailing strategy that has enabled for its success. Apparently, Kendra Scott started the business with just $500 in one of her bedrooms (Kendra Scott, 2017). Initially, she was moving from one door to another while selling jewelry that included bracelets, earrings, rings, and necklaces. Slowly by slowly the business empire rapidly increased and grow Kendra Scott happens to be one of the leading brands in the fashion accessories. The company happens to be inspired and motivated by the travel and sense personal experiences of the society being spearheaded by Kendra Scott who happens to be the CEO (Leadership Analysis, 2017). Indeed, the organization happens to be the true business with an Omni-channel model as a premium retailers like the Bloomingdale, Nordstrom, and Nieman Marcus, Von Maur together with more than 700 global
  • 19. boutique specialists. . The company is on the verge of expanding internationally with more locations that are physical across the globe. Despite the physical stores, the company has also established the great online presence. One of the most outstanding components of the business is the giving back to the community initiative (Kendra Scott, 2017). Through the aspect of giving back, the organization has given back to the community close to $1 million including $60,000 jewelry pieces to more than 900 organizations. Kendra Scott boasts of the thriving corporation with more than 80 retail stores stand alone in the country of America (Kendra Scott, 2017). Indeed, Kendra Scott remains to be famous due to it as the comprehensive collection of the jewelry designed in an elegant manner including the categories of lifestyles like the fine jewelry, home accessories, and beauty products. Indeed, the brand has consistently remained innovative in providing customized products due to the available experience at Kendra Scott stores. The company was established in the year 2002, and its headquarters is based in Texas, Austin. SWOT ANALYSIS · Threats The market currently faces competitors that sell their products at a cost that is low. There is also an increase in the products that are substitutes. The mark growth is slow, there is also an adverse shift in the rates of foreign exchanges due to the government initiated foreign policies. Besides, there is an increase in the regulatory requirements that is very costly. There is an increase and vulnerability of the cycles of business. The powers of the customers and the suppliers have witnessed a growth in bargains (Kendra Scott, 2017). This comes at a time that the needs and tastes of the buyers change continuously together with other changes in demographics. There is great competition in the breaded necklace industry. Presently, very many women are participating in the industry as they sell the Etsy through various mobile phone applications
  • 20. and sites of the social media. Another threat is the number of great companies dealing with jewelry. An example of such countries includes Dot and Stells (Kendra Scott, 2017). These corporations have started constructing long necklaces that are handmade. This has made it more popular with great fun base and the customers. · Opportunities: Kendra Scott has a continuously served the customer groups that are additional. Besides, there is new segments and markets with an expansion of the like products that continuously seek to broaden and expand the needs of the customers and there is also the diversification of the products that the company offers (Leadership Analysis, 2017). Likewise, the organization has continuously discovered new technologies. Also, the company is in the process of forming a vertical integration. There is also trade barriers that are falling and they are also attractive in the markets that are foreign. The rival firms have indicated a complacency and there is also a faster rate of the growth in the markets (Kendra Scott, 2017). The company has socially integrated with the consumers as it represent part of the cultures. The products also integrate with products that initiate memories of childhood. Indeed, this forms an integral part and section of the practices in business, the organization is also involved in initiatives that are charitable (Leadership Analysis, 2017). The organization recently initiated a golf tournament. The organization has a Make-A-Wish foundation that is aimed at the organization apportioning part of their income there. The aspect of donation is indeed a huge advantage for the organization. The other opportunity is the market. There is a great opportunity for the organization to reach out to very many customers in a large area for instance in Houston, Norman and Fort Worth (Leadership Analysis, 2017). · Weaknesses There is an increase in the level of competition and the amount of sales as they continue eat on the market share. There is an
  • 21. increase in the amount competitors eating in the share of the market. The currency exchange rates has not been favorable not forgetting the differences in culture and the level of economies that has witnessed a slow growth. The new to Sell: Both Lexie and Katie have never sold jewels before in that great mass scale (Leadership Analysis, 2017). The two have created for families and friends that they have never practiced it at a larger scale. The two do not have the great experience in setting up the store and shops (Kendra Scott, 2017). Location: despite the fact that they have been into many cities they have a challenge in meeting, ship the necklaces, and make the customers available or meeting due to accessibility. · Strengths Technology: The Company has invested enormously in development and research that has witnessed the emergence of new and latest technologies. This is a very important factor for the industry and the business. The company has also initiated new ways aimed at liberating and leveraging technologies. These efforts have enabled the organization to attain a cycle time for products that are not new (Leadership Analysis, 2017). Besides, the users of internet have increased and this has enabled the organization to attain maximum sales. The patents and regulations have decreased over the past years allowing the organization to penetrate in dynamic markets. Uniqueness and Style: The products like the necklaces are manufactured from the various types of lengths, ornaments, beading styles, and beads. Furthermore, the various types of varieties that the necklaces are composed of with great talents in the jewelry creation. There exist no identical necklaces since they stand out from the competitors that might be selling these same products. · Experience For a very long time, Lexie and Katie have been constructing jewels. This has enabled them to be more confident, creative and efficient. The two have made several types of necklaces and
  • 22. the knowledge how to pull together the various ornaments in the strands. This knowledge on how to assemble the jewelry makes them have the capacity of making any necklaces that accounts as great advantage in customization (Leadership Analysis, 2017). · Price: The directors had great access to the boutique wholesales of the beads. They are able to purchase the beads at a price that is less expensive, so this is what drives the organization into making many profits. Conclusion In conclusion, the external analysis structure of Kendra Scott has proved that the primary reason for the organization success is the management structure that has been implemented in the organization (Kendra Scott, 2017). The organization has established proper marketing tools blended with the innovation that is in the organization of mix and color this is done by the design team of the organization (Leadership Analysis, 2017). Indeed, for the internal structure of the organization, one can judge that passion to something leads to greater heights of achievements. Kandra Scott Company Middle East Analysis Introduction The purpose for this paper is to highlight the success of the strategic development applied by Kendra Scott (Middle East) and how the strategies have been applied well in the organization especially in the Middle East countries like Bahrain and Saudi Arabia. The Middle East market is a god market since majority of the population are wealthy. Furthermore, the Arab community has the tendency of spending much on jewelry and luxuries. This provides a very good market for the products. The paper shall discuss how the company has applied PESTLE and VRIO frameworks in these countries. In order to attract a proper portrait, the paper shall utilize proper information from the well sources and apply them in answering
  • 23. the questions from the intelligent integrative way. The main purpose of this paper entails providing an explanation of the importance of strategic development in Kendra Scott Middle East Market. Besides, the paper shall also explain and identify the tools and methodologies of Kendra Scott strategic development in the examination of the organization external and Middle East marketing structure environments. Figure 1: Middle East Gold Market. Source: www.google.com Kandra Scott has developed be one of the leading brands in the fashion accessories that sells in the Saudi Arabian and Bahrain markets. The company happens to be inspired and motivated by the travel and sense personal experiences of the society being spearheaded by Kandra Scott who happens to be the CEO. Indeed, the organization happens to be the true business with an Omni-channel model as a premium retailers like the Bloomingdale, Nordstrom, and Nieman Marcus, Von Maur together with more than 700 global boutique specialists. Kendra Scott boasts of the thriving corporation with more than 80 retail stores stand alone in the country of America (Kendra Scott, 2017). Kendra Scott boasts of the thriving corporation with more than 80 retail stores stand alone in the country of America and the Middle East (Kendra Scott, 2017). Indeed, Kendra Scott remains to be famous due to it as the comprehensive collection of the jewelry designed in an elegant manner including the categories of lifestyles like the fine jewelry, home accessories, and beauty products. Indeed, the brand has consistently remained innovative in providing customized products due to the available experience at Kendra Scott stores. The company was established in the year 2002, and its headquarters is based in Texas, Austin. Indeed, Kandra Scott remains to be famous in Middle East due to it as the comprehensive collection of the jewelry designed in an elegant manner including the categories of lifestyles like the fine jewelry, home accessories, and beauty products. Indeed, the
  • 24. brand has consistently remained innovative in providing customized products due to the available experience at Kendra Scott stores. The company was established in the year 2002, and its headquarters is based in Texas, Austin. Currently, the company boasts of 2000 employees while the Berkshire Partners recapitalize the capital base. Indeed, the company has practiced a Non-traditional retailing strategy that has enabled for its success. Apparently, Kandra Scott started the business with just $500 in one of her bedrooms (Kendra Scott, 2017). Initially, she was moving from one door to another while selling jewelry that included bracelets, earrings, rings, and necklaces. Slowly by slowly the business empire rapidly increased and grow. The company is on the verge of expanding internationally with more locations that are physical across the globe. Despite the physical stores, the company has also established the great online presence. One of the most outstanding components of the business is the giving back to the community initiative (Kendra Scott, 2017). Through the aspect of giving back, the organization has given back to the community close to $1 million including $60,000 jewelry pieces to more than 900 organizations. According to scholars, the Middle East framework is discussed and described as the worthy tool or component in evaluation of the company’s internal environment. The word VRIO describes the components or questions that need to be asked or considered concerning the capacity or capability or resources applied in Kendra Scott through potential capacity (Kendra Scott, 2017). Kendra Scott has enough capacity for the organization in exploiting the opportunities or environment in neutralizing the threats that Kendra Scott is currently available. Kendra Scott has enough resources in facing the advantages of cost in developing the firm Bahrain Middle East and Saudi Arabian Markets . The company is on the verge of expanding internationally across these Middle East countries with more locations that are physical across the globe. Despite the physical stores, the
  • 25. company has also established the great online presence in Middle East. One of the most outstanding components of the business is the giving back to the community initiative for the Arabs (Kendra Scott, 2017). Through the aspect of giving back, the organization has given back to the community close to $1 million including $60,000 jewelry pieces to more than 900 organizations. The market Middle East economies have witnessed a slow growth over the recent pas but the trend is supposed to increase in the next five years. The international economy has responded well with an increase in the number of buyers including the regional market segments. The currency rate have not been favorable for the organization as there has been a destabilized rate. Besides, there is also an increase in the number of disposable income, as the company rate of dependence has increased (Leadership Analysis, 2017). Nonetheless, this rate is expected to remain static in the coming years. Also, there has been an increase in the demand as the number of buyers significantly increase. The cost of production for the jewelry has significantly remained low allowing the organization to witness great profit margin. As a brand, the organization continues to dream big as a brand, inspired design, colorfully confidence the organization has encouraged the staffs to work as a family, philanthropy, and fashion. Therefore, the company continues to value the employees as the soul and heart of the brand. Presently, the organization boasts of more than 2,000 employees that are the source of the company's success. The employees are innovative of the new state of the art design facilities that have encouraged the growth and culture of the company. The company offers the members of staff some parental leave, great bonuses among other benefits. Figure 2: A Shopkeeper selling gold to Arabs. Source: www.google.com Currently, the company boasts of 2000 employees while the
  • 26. Berkshire Partners recapitalize the capital base. Indeed, the company has practiced a Non-traditional retailing strategy that has enabled for its success. Apparently, Kendra Scott started the business with just $500 in one of her bedrooms (Kendra Scott, 2017). Initially, she was moving from one door to another while selling jewelry that included bracelets, earrings, rings, and necklaces. Slowly by slowly the business empire rapidly increased and grow. Kendra Scott happens to be one of the leading brands in the fashion accessories in the Middle East. The company happens to be inspired and motivated by the travel and sense personal experiences of the society being spearheaded by Kendra Scott who happens to be the CEO (Leadership Analysis, 2017). Indeed, the organization happens to be the true business with an Omni-channel model as a premium retailers like the Bloomingdale, Nordstrom, and Nieman Marcus, Von Maur together with more than 700 global boutique specialists. Financially, the company has been performing well over the last number of years. Over the past five years, the company’s revenue trend has been increasing at a margin of 7.1%. Currently, the annual revenue for the company stands at $180,000 as at 2016. As at 2016, the growth in gross profits for the organization was 12%. The inventory turnover for the organization was 23.6% while the Fixed Assets Turnover for the organization was 8.1%. For the profitability ratios, the organization has performed well (Kendra Scott, 2017). This is an indication that indeed, the corporation is geared towards attaining success. For the profit margin, the organization has established at a percentage of 2%. On the same note, the returns on the shareholder's equity remain at 8.2%. The dividend payout ratio remains at -2.0%. For the liquidity ratio, the current ratio stands at 1.31 while the quick ratio remains at 0.57. The solvency ratio is evaluated by the Debt to Total Assets ratio that is 0.71; the Time Interest Earned remains 32.4 while the Times interest earned cash is 41.4 (Kendra Scott, 2017). From the financial strategic development indicates the incomes for the
  • 27. consumers have increased causing the consumers to continue spending more. The household income for those that earn more than $150k continues to spend more than 2.1% of their earnings in jewelry. Indeed, the consumer’s purchasing power has increased due to the consumer’s income. Out of the spending’s Jewelry accounted for 34%, the spending’s on handbags is 30%, Sunglasses 6%, watches 7%, hosiery 125, watches 6%. Kendra Scott Strategic Middle East Market Analysis As a brand, the organization continues to dream big as a brand, inspired design, colorfully confidence the organization has encouraged the staffs to work as a family, philanthropy, and fashion. Therefore, the company continues to value the employees as the soul and heart of the brand. Presently, the organization boasts of more than 2,000 employees that are the source of the company's success. The employees are innovative of the new state of the art design facilities that have encouraged the growth and culture of the company. The company offers the members of staff some parental leave, great bonuses among other benefits. The company is headed by a Board of Directors and in LifeWorks board from the year 2012. After being launched, the organization has grown the sales volume to more than $80 million worth of sales as the pioneer of the corporation being spotted with great public figures like Gwyneth Paltrow, Fey Tina, and Reese Witherspoon. Indeed, the operations at the then organization have seen it growing aggressively with the urge of pursuing commercial contracts from the larger stores. The management at the organization has incessantly practiced more excellent and superior management skills in the organization. The operations of the organization are based on confidence in doing a better job (Leadership Analysis, 2017). The operations are based on value based on effectiveness and value-based relationship. One of the major structures implemented by the organization incorporates a good policy on training whereby the workers go more than customer service. For instance, the employees are encouraged to learn and be more passionate and
  • 28. diligent at their work. Kendra Scott Middle East Marketing The organization markets through the concept of the open-sale idea that has the presence of a Color Bar in the Middle East nations. In this regards, the associates are trained in making good jewelry. Ideally, the organization has opened several stores countrywide and other locations (Leadership Analysis, 2017). This has enabled the organization to increase its brand presence as it gains more customers. Several celebrities have also embraced the [products offered from the various stores and this acts as a great milestone for the organization. As a brand, the company continues to produce great staffs that later advertised through the various media platforms like the websites and magazines (Leadership Analysis, 2017). Another marketing tool implemented by Kendra Scott is the aspect of giving back to the community. In this regard, they are considered to be very passionate and generous indeed. The home collections for the products remain not to be like any other in the market. The products designed and produced in a large scale of stones that are genuine including shells. After, they are paired with great jewelry customer details that are stored as pieces. Kendra Scott Middle East Organization Structure The organizational structure continues to expect great dedication from the members of staffs. The organization practices a form of Product based organization structure and a functional organization structures. In essence, the organization focusses on the organization structure and the functions are concentrating on the specific areas and specializations. As it is evident, these companies apply this type of the various structures that they want to organize its operations in the various employee groupings, departments, skills shared, sales and marketing, knowledge. The other structures that are based on the various products of the organization of the lines and the products of the company. As a retail store, the store is typically established in the local structure that is available in the various
  • 29. cities. This structure is differentiated in the different locations that create the different departments like in finance, operations, and marketing. The organization is led by a Board of Directors that are then assisted by the Branch managers and the product managers then the department heads like the Finance, marketing, and product managers. Conclusion In conclusion, the Middle East marketing structure of Kendra Scott has proved that the primary reason for the organization success is the management structure that has been implemented in the organization as a brand and financial growth (Leadership Analysis, 2017). The organization has established proper marketing tools blended with the innovation that is in the organization of mix and color this is done by the design team of the organization. Indeed, for the Middle East marketing structure of the organization, one can judge that passion to something leads to greater heights of achievements. The case of $500 to a $250 million empire is the real testimony to true success. References "Kendra Scott | Shop Jewelry For Women, Home Décor And Beauty". Kendrascott.Com, 2017, http://www.kendrascott.com/. "Kendra Scott Jewelry Store Prompts Homecoming For Designer". Milwaukee Journal Sentinel, 2017, http://www.jsonline.com/story/money/business/retail/2017/04/1 4/kendra-scott-jewelry-store-prompts-homecoming- designer/100484486/. "Leadership Analysis: Kendra Scott & The Entrepreneurial Spirit On Seelio". Seelio, 2017, https://seelio.com/w/1eoy/leadership-analysis-kendra-scott-the- entrepreneurial-spirit. "What Is Organizational Structure Of Management? - Types & Examples - Video & Lesson Transcript | Study.Com". Study.Com, 2017,
  • 30. http://study.com/academy/lesson/what-is-organizational- structure-of-management-types-examples-quiz.html. References "Kendra Scott | Shop Jewelry For Women, Home Décor And Beauty". Kendrascott.Com, 2017, http://www.kendrascott.com/. "Kendra Scott Jewelry Store Prompts Homecoming For Designer". Milwaukee Journal Sentinel, 2017, http://www.jsonline.com/story/money/business/retail/2017/04/1 4/kendra-scott-jewelry-store-prompts-homecoming- designer/100484486/. "Leadership Analysis: Kendra Scott & The Entrepreneurial Spirit On Seelio". Seelio, 2017, https://seelio.com/w/1eoy/leadership-analysis-kendra-scott-the- entrepreneurial-spirit. "What Is Organizational Structure Of Management? - Types & Examples - Video & Lesson Transcript | Study.Com". Study.Com, 2017, http://study.com/academy/lesson/what-is-organizational- structure-of-management-types-examples-quiz.html. TCD #1 - DRAFT DUE - Title, Intro, Mission, References This assignment should include the following: Title Page - remember APA format (and Running head) Table of Contents (see example in Blackboard; page numbers are not required) Introductory Paragraph Thesis Statement: What are the key strategic issues you will be examining?
  • 31. Mission Statement (define mission statement and cite the textbook), References Page Assignment Submission Information General Instructions: These assignments are for the Traditional (Big) Case only. Each assignment is to be uploaded as a WORD document only. (Do not write your assignment within Blackboard.) You may submit your assignment at any time prior to the due date -- either as you have it ready or on the actual due date before 5pm. Treat each submission as a stand-alone assignment. Do not submit previous work with the current assignment, unless the entire draft or final paper is due. You will only have one opportunity for submission, so please make sure what you are submitting is your best work and includes appropriate citations and references. Once the deadline has passed, you will not be able to submit your assignment, so please do not wait until the last minute. If you have any questions, please contact me before you submit your assignment -- give plenty of time for a response so you do not miss the submission deadline. TCD #1 - DRAFT DUE
  • 36. assignment is to be uploaded as a WORD document only. (Do not write your assignment within Blackboard.) You may submit your assignment at any time prior to the due date -- either as you have it ready or on the actual due date before 5pm. Treat each submission as a stand - alone assignment. Do not submit previous work with the current assignment, unless the ent ire draft or final paper is due.
  • 37. You will only have on e opportunity for submission, so please make sure what you are submitting is your best work and includes appropriate citations and references. Once the deadline has passed, you will not be able to submi t your assignment, so please do not wait until the last minute. If you have any questions, please contact me before you submit your assignment -- give plenty of time for a response so you do not miss the submission deadline. TCD #1 - DRAFT DUE - Title, Intro, Mission, References This assignment should include the following: Title Page - remember APA format (and Running head) Table of Contents (see example in Blackboard; page numbers are not required) Introductory Paragraph Thesis Statement: What are the key strategic issues you will be examining? Mission Statement (define mission statement and cite the textbook), References Page
  • 38. Assignment Submission Information General Instructions: These assignments are for the Traditional (Big) Case only. Each assignment is to be uploaded as a WORD document only. (Do not write your assignment within Blackboard.) You may submit your assignment at any time prior to the due date -- either as you have it ready or on the actual due date before 5pm. Treat each submission as a stand-alone assignment. Do not submit previous work with the current assignment, unless the entire draft or final paper is due. You will only have one opportunity for submission, so please make sure what you are submitting is your best work and includes appropriate citations and references. Once the deadline has passed, you will not be able to submit your assignment, so please do not wait until the last minute. If you have any questions, please contact me before you submit your assignment -- give plenty of time for a response so you do not miss the submission deadline. Running head: THE COCA-COLA COMPANY 1 The Coca Cola Company: An Strategic Analysis
  • 39. Key Internal & External Environmental Factors and Strategic Recommendations First LastName University of the Incarnate Word THE COCA-COLA COMPANY 2 Table of Contents Introduction………………….………..….………………………… ……………………………..4 Thesis Statement……….…….……………………………………………… ……………………4 Mission Statement…………..…….….…….…………………………………
  • 40. ……………….......5 Vision……………………………..………………………………… …………………….6 Core Values………...……………………………………………………… ……………...7 Executive Leadership………………….………………………………………… ………………..7 The External Environment…………………...…….……………………………… …………….10 Remote Environment……..…………………………………………………… ………...10 Economic Factors………………………………………………………………... 10 Social Factors………………………………………………………………… ….12 Political Factors………………………………………………………………… .15 Technological Factors……………………………………………………………16
  • 41. Ecological Factors……………………………………………………………….. 18 Operating Environment………………………………………………………… ………..19 Competitors………………………………………………………… ……………20 Customers…………………………………………………………… …………..22 Industry Environment………………………………………………………… …………24 Industry Analysis………………………………………………………………. ..25 Porter’s Five Forces...……………………………………………………………25 The Internal Environment………………………………………………...……… ……………...31 THE COCA-COLA COMPANY 3
  • 42. SWOT Analysis…………………………………..………………………… …………...31 Strengths……………………………………………………………… ……...….31 Weaknesses………………………………………………………… ………....…34 Opportunities………………………………………………………… …………..36 Threats……………………………………………………………… ……………39 Core Capabilities………………………………………………………… ………………41 Brand Strength……………………………………………………………… …...41 Unique Distribution System……………………………………………………...42 Comparison with Past Performance and Competitors…………………………………...43
  • 43. BCG Matrix………….…………………………………………………… ……………..47 Cash Cows………………………………………………………………… …….48 Stars…………………………………………………………………… …………48 Question Marks…………………………………………………………………. .49 Dogs………………………………………………………………… …………...50 Long-Term Objectives and Strategies…………………………………………………………...5 0 Objective #1……………………………………………………………………… ……...51 Strategy #1……………………………………………………………………… ……….52 Objective #2…………………………………………………………………….. ……….55