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Brief summary of the company

Guess Jeans is a final product that is found in GUESS Company. The company is in the fashion industry located in Los Angeles. This company was founded in the year 1981 by Marciano Maurice. Nakash family gave the first capital to start up the business. The first product to be produced by the company was the three zipper style jeans that were called Marilyn. Guess Company was among the first companies to come up with designer jeans. Apart from jeans, the company also produces other accessories that are both for men and women. In 1984, they diversified and produced the baby line clothes and called it baby guess. Guess Jeans is the main product in the company and if well advertised, it improves sales upwards.

Vision

To be the preferred and profitable company in making quality and customer made items that will be desired by all levels of customers who choose luxury from the items they purchase.

Mission

To bring beauty in fashion industry through providing the best quality on the customized products through innovative and cost effective business practice. This will be attained through mutual beneficial partnership with employers and suppliers thus enlighten the customers while taking care of the community and environment that the company operates.

Core Values

  • Competition- to always be ahead of our competitors, producing innovative cutting edge, new products and services, while adhering to ethical competitive practices and procedures.
  • Integrity and ethics- To always abide by the roles and laws of the country of operation by practicing modern and acceptable management activities at all time.
  • Customer Satisfaction-To always ensure high quality provision of services to our customers that not only meet their need but also provide an element of satisfaction.
  • Employees Welfare- To ensure that employees are competitively remunerated rewarded and recognized and above all subjected to continuous training so as to boost their skills and knowledge hence delivery of efficient on professional services to our customers.
  • Productivity- To engage in modern technology in production process aimed at cutting down cash and promoting efficiency and quality.

Environmental Analysis

1) Internal Environmental Issues: Potential Strengths and Weaknesses

The key internal factors are firm’s basic capabilities limitations and characteristics. Therefore, company profile should access the strength and weaknesses of the company’s management, organizational capabilities (Williams, 2003). A factor is considered strength if it’s a distinctive competence or key success factors while weakness is a critical market performance variable that an organization lacks.

Strengths

Guess Jeans has acquired a strong brand name. This has made them attain a competitive advantage over the other competitors in the same industry. This strong brand name has acquired a strong customer relation. They have ensured quality and durable production of their items and maintained a distinctive and high quality packaging. They have product differentiation through new venture of products and have a signature in all their products. This is just to ensure that the quality of the products is maintained (Kendall, 2006). It also protects the customers from counterfeits in the market. Diversification has assisted Guess Company to grow and remain buoyant tin the market. Guess Company has a strong distribution channels. This has been merged with knowledgeable sales staffs that attend to customers in a professional way.

Weaknesses

Despite the strengths in the market, the company has had many bottlenecks that need to be nailed out. The company does not participate in sales promotions fully. This has had a negative effect on the annual sales. The company is on the maturity stage and from the normal curve; it implies that the company may start to decline in the near future (Bradley, 2005). This will allow other competitors in the industry to grow.

2) External Environmental Issues: Opportunities and Threats

The external environment generates the opportunities and threats variables that indicate the positive and negative forces, facing the firm respectively. An appropriate framework that can help in identifying opportunities and threats is by classifying the external environment from the context of the proximity to the firm (Tam, 2003). The nearer the external environment of aspect, the more control the firm has over it and hence able to deal with it. This can be classified into;

Remote Environment

This comprises factors that originate beyond and usually irrespective of any single firms operating situation. These include; (PESTEL); Political, Economical, Social- cultural, Technological, Ecological and Legal.

Political issues:

These are governmental issues that mostly affect a company that has invested in a particular country.

Opportunities

There is economic liberation in most f the countries that the company has opened its channels. These countries include, NYC, USA, Busnago Italy, and Dijon France. There is also strong democratic set up and this favors Guess Company in London and Barcelona, Spain. Most of the countries where the company has its outlets have stable macro economic policies.

Threats:

The market in Italy has been affected due to the transport problems in the country. The town also has a lot of cultures that most of its residents abide. This has affected the market of Guess Company.

Economic environment

These are economic factors that affect a company directly. In most cases, the company experiences losses but in some cases, they experience profits. If the company is new in the market and has no many competitors, they should put best strategies in place so as to make abnormal profits (Tam, 2003).  These are the benefits of being the first in the market before the market is flooded.

Opportunities:

Countries like Spain has a large population and most of this people are youths. According to statistics, youths are the people who make sales as they have a higher spending capacity. The youths never care about the price of the product as long as the quality is perfect.

Threats:

Unemployment is on the rise in countries like USA. This has affected the total sale of the company. There is also regional imbalance in some regions. This has increased the gap between the rich and the poor. As few people are in richness, there are some people who are living below the poverty line.

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