Consultancy Report on the Cranvilles Department Store. External Influences, Business and Internal Capacities

Name: Consultancy Report on the Cranvilles Department Store. External Influences, Business and Internal Capacities
Author: Judith Köstler

Köstler, Judith

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Consultancy Report on the Cranvilles Department Store. External Influences, Business and Internal Capacities

Essay, 2015

15 Pages, Grade: 1,0

Judith Köstler (Author)

Excerpt

Table of Content

1.0 EXECUTIVE SUMMARY

2.0 PROJECT OUTLINE AND SOLUTION
2.1 Introduction
2.2 Outline
2.3 SWOT analysis
2.4 SLEPT analysis
2.5 Aims and objectives
2.6 Solution

3.0 JUSTIFICATION
3.1 Benefits and Costs

4.0 IMPLEMENTATION
4.1 Project plan
4.2 Risk Assessment plan

5.0 CONCLUSION

6.0 REFERENCES AND FIGURES

1.0 EXECUTIVE SUMMARY

The following Consultancy Report on Cranvilles Department Store will firstly analyse the business and its internal capacities and external influences, will then list aims and objectives suitable to the current situation and will showcase a solution to implement these.

The internal analysis will be conducted with help of a SWOT analysis (2.3), highlighting amongst others the strength of Cranvilles quality customer service and the weakness of their missing online presence. External factors will be illustrated though a SLEPT analysis (2.4), resulting in the definition of aims and objectives, through the SMART approach (2.5).

As the current situation of Cranvilles consists of the company only administering one shop in central New York, without an online shop nor an online presence, the need to keep up with the competition, to keep the business successful has emerged. The internet is becoming more and more important for businesses, as new technologies are introduced permanently and customers are getting used to rather buying online, than in store.

Therefore the objectives of Cranvilles include the development of an e-business strategy, in form of the website Cranvilles.com and an app, and the modernisation of internal processes by setting up an intranet further described in the solution part (2.6).

Benefits and costs (3.0) will grant justification, followed by the project plan in form of a Gantt chart (4.1) including distinct steps for the implementation. Lastly possible risks will be evaluated (4.2), giving sufficient information on the implementation before the final conclusion is drafted (5.0).

The development of the website, app and intranet will be conducted within the next 11 months, promoting the brand and strength of quality customer service by expansion to different channels. A wider customer base in different segments will be gained and increase sales by 30% and profits by 15% within the first 6 months of performance. Further efficiency of operational processes will be enhanced by a better communication system in form of an intranet.

2.0 PROJECT OUTLINE AND SOLUTION

2.1 Introduction

Cranvilles Department store is a high-end, traditional, prestigious retail store, located in Manhattan, New York. The product range consists of quality clothing for women, men and children, as well as cosmetics and homeware.

The scope of the business, as it includes one store only, serving local well-positioned customers. It is managed by the owner Mark Cranville and places special value on quality customer service, based on well-trained staff. The product range is personally selected, presenting quality products enhancing their value to the customer.

The business consists of a purchasing, finance, sales and operations department, each employing few skilled staff. As the e-commerce spending has been rapidly growing^[1] in recent years and most businesses do not only have bricks and mortar stores anymore, especially traditional department stores are forced to keep up with the digital innovation.

The Cranvilles Department store is one of these traditional businesses and its owner is concerned of a possible fall back compared to other department stores in the sector, which are digitally evolved. The company does not have website or a digital business strategy, not being visible to a wider audience.

Therefore the company will extend its competitiveness by implementing a digital business strategy to widen its customer base and to acquire to new markets. Existing capabilities of the brand such as excellent service and selected products can be transferred to the new strategy. This will lead to an enhanced and modern shopping experience available via different channels.

2.2 Outline

To be able to implement a new online business strategy for Cranvilles, the strategy process model as seen in Figure 1 will be used as rough guideline.

The company will in the first step be analysed in detail, considering internal and external factors. For this the strengths and weaknesses, as well as the opportunities and threats will be looked at, conducting a SWOT analysis. External factors will be considered in the SLEPT analysis, listing social, legal, economic, political and technological influencing the entity.

Thereafter the findings will help to construe possible aims and objectives applying the SMART model. The third step of the strategic definition will include solutions for the implementation of the objectives and benefits will be contrasted with costs.

Lastly a project plan will be set up in form of a Gantt chart and a risk assessment, estimating eventualities influencing the success of the new e-business strategy.