Strategic Management and Sustainability

 

Introduction

            Inglot is a private international company based in the United States mainly involved in manufacture, sale and distribution of cosmetics. It was stated by Wojciech Inglot in 1980s at Poland. It has attracted customers since year 2000 where it picked as a major cosmetics retailer and producer. It enables customers choose their own color combination which has made it popular among its customers. This strategy has enabled it outdo its competitors thus it is competitively advantaged among the many cosmetics company in United States. It has successfully established itself globally in big countries such as China and Brazil. It attracts its customers through advertising its products in order to reach wide ranges of people. It has not yet beaten large companies in cosmeytics especially in Brazil and China since the cosmetics industry faces stiff competition. By venturing in to male cosmestics and anti aging lotions, Inglot Company will be competitive advantaged.

Outline firm-level (micro) factors contributing to the development of INGLOT’s competitive advantage

            Firm level or micro factors are those factors that affect the company direct and impact on its success and achievements. They are factors directly contributing to success or failure of the organization. They include customers, competitors, suppliers, shareholders, mode of advertisement, employees and investors. These factors affect the company and promotes to its sustainable growth and competitive advantage. Inglot Company focuses on the above micro factors in order to achieve its success and attract more customers.

It focuses on the 4ps as micro factors of success. The 4ps to explain the achievement and success of Inglot Company are discussed as follows. They include price, products, placements and promotion.

Products

These are the goods and services offered by the manufacturers to the consumers in exchange of cash. Products as part of the mixing in the market involves a number of factors which include quality, design of the products, features, packaging of the product, the brand name and the physical appearance of the product.

Price

This is the amount of cash various products and services amount to. The price is determined by the manufacturers and is affected by a number of factors which include the list price, available discounts and allowances, the time of payment and any credit services if necessary.

Placement

This is the method followed so as to distribute products until they reach the targeted markets. Placement as one of the market mix consists of transport, medium of distribution, exposure and the destination required.

Promotion

This is the process of informing and persuading customers to buy the available products. It is also one way of reminding customers on already existing goods and new goods. Promotion as one way of marketing mix includes adverts required, sales marketing and promotion.

Customers

Customers in Inglot Company are well catered for. Cosmetics are manufactured and suited for both genders. They manufacture female and male cosmetics and favor colors of different customers. The needs of customers are well catered for with products of customer’s likeness and preference. Inglot aims at attracting and retaining its customers through various advertisement methods. Inglot uses necessary strategies for it to retain its customers for example offering special offers and discounts regularly .Through use of segmentation, customer retention is encouraged throughout the life of a customer. Inglot ensures it retains its customers and attracts many more.

Employees

Inglot ensures its employees are qualified and skillful. Qualified staff ensures success and growth of the company. Employees should be given proper training and orientation when they join an organization which inglot ensures. Employees must be committed to their jobs. Employers should also respect rights of employees. This is done in order to avoid conflicts in the organizations as a way of promoting unity and good interaction between employees and employers. The company also motivates its employees as one way of promoting success. Motivated employees work hard in order to achieve success. It promotes its employees who in turn provide excellent services to customers.

Competitors

Inglot faces stiff competition from cosmetics companies. It ensures the competition is health through provision of quality services to its customers and ensuring prices are affordable to its targeted customers. Its main competitors include Make up Art Cosmetics and Make up For Ever (Qug & Zdenek 2014, p.8). The company has renovated and ventures in to new technologies such as production of novel lotions and other products which are more effective to the skin than former products. It produces unique products which other competitors do not producer in order to retain customers and attract many others. The company has ensured that it has an excellent packaging system which is colorful in order to attract customers thus outdoing its competitors. It has different products with all type of colors which makes it preferred by most customers unlike its competitors who produce different products with color limitations. Use of wide range of colors is a strategy which has enabled Inglot to remain successful and attractive to many people.

Suppliers

These are people who provide raw materials and other necessities to the company. If its suppliers of necessary companies fail to do so, then failure will be impacted to the company. This is a direct factor which promotes success and can lead to failure especially when there is poor relationship between the suppliers and management. Rights of suppliers should be followed which ensures that quality supplies are made in time. Suppliers can directly result to success or failure of the company. The management should maintain good relations with the suppliers and this ensures sustainable development and competitive advantage.

Outline country-level (macro) factors contributing to the development of INGLOT’s competitive advantage

Macro factors include all external factors that lead to success, sustainable development and growth of the company. They include for example distributers, competitors and other wide external factors. These wider macro factors include political or legal, social-cultural, economical, technological and economic factors. The above factors may have negative or positive impacts on the company. Inglot ensures that the macro factors bring success and sustainable development to the company.

Distributers

It started its distribution from five stores and has grown to increase its markets and distribution with its main stores in Poland and USA. It keeps its franchise model which is a strategy that has enabled it remain unique and successful (Qug & Zdenek 2014, p.4). It considers partnering with small family owned companies since through its franchising model; the company is able to partner with profitable family owned businesses. Its channels of distribution have ensured that its expansion is possible globally. It has also partnered with long retail chains which ensure it remains successful and its products reach wide range of people. It has partnered with other known cosmetics companies which makes it sell a wide range of products to its customers. Getting a wide range of products has enabled it increase its customers globally as well as retain existing ones.

Technological influences.

Inglot, the well known seller and manufacturer of cosmetics globally employs modern and most recent technology in order to retain its customers and attract more. It is well established in most of the countries in the supply of cosmetics. The company manufactures modernized and colorful cosmetics from time to time which are backed up with modern advertisements, celebrity endorsements and by so doing they are able to attract more customers. The Company through application of latest technology has ceased from being a distributer of Poland cosmetics to being the top most leader in the specialty, distribution and promotion of the cosmetics ('Breathable' Nail Polish Creator Searched for a Healthier Cosmetic 2013, n.p). However though the international company has achieved lately, it faces many challenges and expenses in its application of modern technology.

Political factors

The government is responsible in creating economic policies and regulations which will increase the growth of the business. Inglot is a beneficiary of these policies in the United States which provide them with an opportunity to modernize and sell their demanded products. This support by the United States government, the low interest rates, the international competitiveness of the tax system and the stable currency condition has helped a lot in the formation of the foundation which may be sensitive to the growth and development of the Inglot Company. Inglot Company mostly trade in America and Poland as its main potential market.

Economic factors

These factors have various impacts on how the entire company makes its own decision and how it operates its major businesses. In the example of many other organizations and also other companies, the greatest threat in the economy would be the economic recession. The recession always have adverse and harmful effects on the growth, development and advancement of Inglot. The number of the consumers is decreasing downwards since it is well known that the United States economy if currently facing a huge downturn. As a result of the consequences the voices of the labor work and the marital are also increasing rapidly. Notably, economic recession is one of the biggest treat to growth of companies and industries.

Environmental analysis

The study of the environment is not necessarily the inclusive of the overall environment of the earth but it includes all the micro and macro environment surrounding a certain business. Inglot has proved itself responsible in all the above three cases. As far as the global environment is concerned Inglot is ISO certified from the global environment, pollution and carbon foot prints tracing point of view. Inglot is a supporter of the green environment and thus does everything necessary so as to protect the environment. Inglot is objected in fulfilling the expectations of the customers, creation of the environmental friendly atmosphere globally, motivating its employees and lastly being on the very top of the legislation. Inglot displays its positive attitude in a study towards social and environmental responsibility on various parts of the company’s globally.

Social cultural

It provides cosmetics which are well loved by its customers. The chemicals used are acceptable to customers since they do have negative impacts on the skin. People are cautious of the products they apply in case of health safety. In addition, Inglot is located in healthy environments which enable it to encourage safety of the environment. Currently, people are getting conscious of their body and health in general hence they have maintained use of body friendly beauty products in order to maintain their fitness and health status.

Develop INGLOT’s strategic plan for the next five years

A strategic plan is a document used to give outline of the organizations goals, objectives and aims to be achieved. It includes what a company plans to achieve and ways of achieving during the planning process (Clark, 2014, p.442). A strategic plan is important since it outlines a company mission and vision and ways of achieving the vision through following the mission. The strategic plan will aim at improving the current situation in the company. It will lead to expansion of the company to other countries in order to make more profits. The family owned business aims at providing its customers with quality products in line with the new technology.

Developing this strategic plan is a process which should be followed if success is to be achieved. The managers should be able to determine the current situation of the company in order to know how they will achieve their vision in the next five years (Clark, 2014, p.442). The managers should analyze both the micro and macro factors affecting the business at the moment in order to achieve success in the next five years. They should look at their competitors in order to come up with ways of outshining the competitors in order to retain customers and attract more customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Clark, W. W. (2014). Global sustainable communities handbook: green design technologies.             http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&A N=485197.

Qug.H & Zdenek. N (2014) Inglot conquering the world

'Breathable' Nail Polish Creator Searched For A Healthier Cosmetic 2013, n.p.: National Public   Radio, Literature Resource Center, EBSCOhost, viewed 15 June 2014.