Strategic Management - Business & Management Essay

Strategic Management - Business & Management - Essay ExampleThe company did non answer to the changing management needs and continued to pay heavy packages to its workers and coupled with low response to fashion changes, it has lost its customers confidence.JZ Benny did not respond to the competitive edge that the new entrants like Spanish El Dorado and Scandinavian Helgar were employing. It remained static in the fashion outsourcing even when its competitors changed to fast fashion model shops. maculation the competitors outsourced their fashions from Eastern Europe, JZ Benny instead rushed to China and South East Asia which sold at low cost. Thinking this as a cost vantage over the rivals, it turned out to be a post burden for the company since they had to buy in bulk and hence were left with indispensable stock at the end of the season. This was a miscalculated marketing strategy resulting from inefficient market analysis. The company failed to keep up with its competitors who resulted to e-supply chain which enabled them to connect the customers with the designers hence placed in the market what the customer preferred. This ensured that they were always ahead of other retailers since they stocked what the customers liked.JZ Benny saw a management gap and responded by fishing Bob DSaster from competitor Helgar Fashions. As the CEO of JZ Benny, DSaster was confident that cost cutting measures and investment in technology would turn the chain around to start devising profit. Cost cut measures were implemented leading to layoff of about 20% of the staff and heavy investment in RFID (Radio Frequency Identification) tags to help in improving the Barcode lineage Processing. However this did not help the company and the AGM dismissed DSaster and placed John Hammond as the CEO.As expressed by Courtney et al., 1997, the case of JZ Benny is a management problem. The company has been under a management that does not recognized that