The 1st assignment is all about understanding ‘the environments of the organization both for...

Question

The 1st assignment is all about understanding ‘the environments of the organization both for external (macro+industry level) and also internal (capacity & alignments)’; here I recommended to you to use the SWOT analysis to explain ‘‘why and how’ certain environments are relevant/important for our partner organization (PO), in relation to causes of challenges’ – please refer to the lecture slides for topic 3, environmental analysis (: during the topic) for the suggested tools (none of these tools are mandatory per se, as long as you could make convincing arguments with some or others.). This assignment would ‘lay the foundation’ to formulate the strategic decision of the company, by understanding why and how certain environments would have a significant impact on our PO, while there may be blind spots that our PO may have missed with their recognized challenges and their strategy.

Management in Practice Industry Partner.

Company name: TONIC15 LTD
Founded in 2018 in London, United Kingdom. The business operates in the UK, with its office in London and a warehouse in Southampton, with the primary focus on the UK and EU markets.
Connects the K-beauty and the global market through D2C eCommerce (www.tonic15.com(Links to an external site.)) and B2B (distribution). TONIC15 stocks its products at the UK-based major department stores including Harvey Nichols, Fortnum and Mason, and Selfridges, as well as online beauty retailers, including Lookfantastic and Feelunique.
Currently operated by the founder Ms. Jin Kwon with 2 employees, an Operations Manager and a Content Manager(part-time).

screenshot-2020-08-12-at-123300-pm-rcx1gksp.png screenshot-2020-08-12-at-123628-pm-yy2r5rkt.png

Abhishek · Accepted Answer

BUSM4547: MANAGEMENT IN PRACTISE
TONIC15 Ltd
Executive Summary
This assessment has been based upon the Tonic15 Ltd of the United Kingdom. The assignment has been based upon the external and the internal environment business proceedings of the renowned Tonic15 Ltd. Key elements, which can be found from this assignment is that the organisation has adopted five types of models and the framework for the pursuant of the actions of their Korean business in the UK. It can be said that the company has been putting all its efforts to carry on strategic decision making, measuring the competencies, resources in actions and maintaining the profits. Company has successfully handled the strategic management challenges and dilemmas with effortful success in the current domain. This organisation is the global leader and the benchmark for the sale of the Korean Beauty products. Tonic15 Ltd has achieved a 10% of the share market in the UK. The organisation has the specialisation of accessing the global market through D2C and B2B. However, the work will deal with the tension between the external and the internal environment of the company. It will show the combination of the external and internal factors. Additionally, it will highlight the strategic challenges faced by Tonic15 Ltd of the global market.
Table of Contents
Executive Summary	2
External Environment	4
PESTLE Analysis	4
VUCA Framework	5
Porter’s Five Forces	6
Spider Gram	7
Key Competitors	7
Internal Environment	8
Strategic Capabilities	8
Strategic Tools	8
Action Planning	8
VRIO Framework	9
Dynamic Capabilities	9
Production Improvement	9
Increasing of the Innovation	10
Maintaining of Customer Review	10
Target Plan Management	10
SWOT Analysis	10
Description	10
Management Challenge or Strategic Dilemma	11
Unable to Secure the Work Capital	11
Scaling without Support	12
HRM Structure	12
Fluctuations in Sales	13
Conclusion	13
References	14
External Environment
PESTLE Analysis
	P-Political
	Tonic15 Ltd has been following the EU Cosmetic regulation (EC) NO 1223/2018). Additionally, the EU cosmetics Directive have been governing the Cosmetic manufacture (Kara, 2018). These governing bodies suggested that Tonic15 Ltd will keep 2% tax on the skincare products and 1% tax on the other beauty toners.
	E-Economic
	The government of the UK has provided a huge sum of $80,000 for the inauguration of the Korean beauty business of Tonic15 Ltd. The decision making has been granted of keeping the prices of the Korean products at moderate costs (Srdjevic, Bajcetic & Srdjevic, 2016)
	S-Social
	Tonic15 Ltd Korean products have been popularised and suitable for the customers of the age ranging from 24-45 (Pan, Chen & Zhan, 2019). However, customers who are in the professional field has been favouring the herbal product for their busy lifestyles
	T-Technological
	The government of Tonic15 Ltd has given the permissions and offered 5D inter connections for the fastest transactions of their beauty products for delivery. Additionally, digital marketing strategies have been granted by the government for Tonic15 Ltd (Perera, 2017). 
	L-Legal
	Tonic15 Ltd has been following the UK Cosmetic Products’ Safety Regulation since the year 2013 (Gegg & Wells, 2019). Advertising policies such as the ASCI Code for beautification has been followed by Tonic15 Ltd for the business processes and dealings. Following the D2C and B2B laws of distribution
	E-Environmental
	25 year Environmental Beauty Plan of the UK government has been followed by the Tonic15 Ltd. This plan settles down that each of the Korean Products should be dust free, organic. According to this plan, Tonic15 Ltd governs its business policies. 
VUCA Framework
	V-Volatility
	The aspect of the volatility, which has been considering the business fate of the Tonic15 Ltd, is the raisings in the stock market in 2018-2020, from 19.3b to 21.8b. Innovation and technological rules laws such as the product innovation with plant based ingredients are made, which was not fruitful for the customers. Digitalisation methods proved inferior by the Tunic 15 Ltd for the transaction of their products and the manufacture (Codreanu, 2016).
	U-Uncertainty
	The customers have a misconception that Tonic15 Ltd has been producing products with exotic ingredients like snail mucin, cheap products with kitschy packaging (Mack et al. 2016). This view in the market has made the management of the Tunic 15 Ltd highly uncertain about the future profits in the market domains. Tonic15 Ltd has a lack of clarification facility to evaluate a situation properly in the Korean Business.
	C-Complexity
	Due to the rumours in the market scenario regarding the process of the manufacturer, additional with their target plan failure of the plant-based products, the situation of the Tonic15 Ltd has become more complex. Tonic15 Ltd has been suffering due to cause and effect of the business with distribution systems, which has not been linear anymore. There has been arousing of the organisational alliances. 
	A-Ambiguity
	There is another issue, such as the higher price of Korean Products, which has been threatening the market of organisation. Therefore, multiple interpretation has been permitted from EU Cosmetic directive partnerships and the clients of the Tonic15 Ltd. For a considerable span of time, there has been a lack of proper solution from the Tonic15 Ltd management.
Porter’s Five Forces
Competitive Rivalry
The industry is highly competitive in the country. There is a high concentration suppliers and manufacturers in the market. Buyers in the industry can be attracted through aggressive price cuts and through bringing in innovation and variety in the products offered. 
Supplier Power
The supplier power of the Tonic15 Ltd and the suppliers like the “Whole Korea” and “Asia Master Trade” is subsequently low. As there are many cosmetic products available in the market produced by both large and small scale manufactures the power of the supplier is low. The consumers have power on the other hand, to influence the market (Moreno-Izquierdo, Ramon-Rodriguez & Perles-Ribes, 2016).
Buyer Power
The buyer power of the Tonic15 Ltd is high. The number of players in the industry is large and thus there is supply and availability of varied products. The consumers have varied choice and thus they can control the product price through purchasing from other suppliers in the market. 
 Threats of Substitution
Threats of Substitution of the Tonic15 Ltd are subsequently high. There is a high threat of substitute products. The cosmetic industry being accessed by all profiles of customer the substitute products in the industry are readily available. The substitute performance is nil in Tonic15 Ltd (Aydin, 2017)
Threats of New Entry
The threats of entry are low. This is due to several factors such as the huge cost of entry. High requirement of resources and work force to develop new products and research process in terms of manufacturing process also involves a lot of funding. Tonic15 Ltd sets up technological protection and the barriers to entry have been set by the organisation.
Spider Gram
Key Competitors
Tonic15 Ltd has been facing the issue of key competitors from the 3CE and the ETUDE HOUSE. The mode of competition has been based upon the varieties of productions and manufacture (Wahid, 2017).

The 1st assignment is all about understanding ‘the environments of the organization both for external (macro+industry level) and also internal (capacity & alignments)’; here I recommended to you to...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment