Business Environment of Ralph Lauren



Business Environment of Ralph Lauren

Introduction

Stakeholders have a significant share in tailoring the business environment. It is apparent that stakeholders are able to reshape the strategic decisions of a company. Also, they influence the decision making process within an organisation. Stakeholders can be anyone who holds the stake in a business (Archie et al, 2009). Generally, stakeholders are considered to be the individuals who are investors or financers (shareholders). It is essential to know that customers & employees are also stakeholders for an organisation. The influence of stakeholder is powerful enough to change the mission & aims of organisations. Also, they impact the financial decisions of a business. In this article, the discussion explores how organisations modify their strategic decisions, in order to meet the stakeholders' demand. The article investigates the impact of stakeholders in Ralph Lauren Corporation.

Discussion

Company Overview

Ralph Lauren is a Fashion designer, who founded the Ralph Lauren Corporation in the 1967. The corporation is a leader in producing life style products. The company deals with the designing, distribution, and advertising of the premium products. The corporation deals with the products in the four major classifications: Apparel, home, accessories & fragrances. The company has its base in the United States. In the year 1981, the corporation went into the European market. Today, Ralph Lauren operates through over 639 locations (worldwide). The corporations have a number of “Full-price” and “factory stores” (Thomas, 2009). The company has a strong reputation in the international markets. The company image develops with the introduction of distinct products & brand names. Polo by Ralph Lauren is one of the most prominent brand names of the company. Polo was the first in creating the lifestyle experiences for the customers. The corporation creates apparel for men, women, teens, and children. The Polo line reinvented the classic attires for men & women. The corporation continues to inspire a million of business owners.

Impact of Stakeholders

The success of the corporation can be detected through the successful management of stakeholders (James et al, 2002). The company has three distinct business units: wholesale, retail, and licensing. The wholesale segment accounts for around 56.5% of the total revenue. For a business, customers serve as dominant stakeholder. In the United States (and worldwide), there is an increasing trend of shopping through the departmental stores (Thomas, 2009). The stores serve as “one stop shop” for the customers. They are able to select through a range of brands and products. The Corporation was able to identify the need to have “reserve shelf” space in such stores in 2009 (like Macys & Dillards). The corporation initiated the idea of having shops “within shops” (Frank, 2009). It allows Ralph Lauren products to be displayed in the allocated floor spaces. In this way, the year 2010 generated huge revenues through this concept. The main impact is that customers are able to buy discounted products (Thomas, 2009). The concept of “shops within shops” was a deliberate attempt to promote brand ...