Case Study Of Superstyle

878 Words 4 Pages
Register to read the introduction… This will have a negative effect on staff morale and which will likely affect Superstyle’s productivity and quality (something Superstyle prides itself on). This could lead to a bad reputation and further lead to a decrease in sales. Furthermore, the low morale will also create a higher labour turnover and absenteeism as the employees will not feel happy with the new HR strategy. This may lead to higher recruitment costs and an increase in overtime expenditure. The raise in costs will affect profit margins and therefore will lower the available dividends to the …show more content…
Gemma previously worked in the mobile phone industry as a Finance Director and therefore is likely not have any experience in the market she is planning on entering. This will increase the risk of the proposal due to her inexperience with market trends, patterns and customers. Also, Superstyle currently has a high net profit margin of 20.23% which is a high figure for a net profit margin. Therefore, I believe that too much of this profit is going towards retained profit rather than that for use as dividends. Naheem Iqbal, the founder of Superstyle, should delegate some of this profit towards the shareholders to satisfy the shareholders needs.
However, I believe that for the business to continue with their growth they need to invest in alternative markets: such as women’s wear. Additionally, I would suggest using market penetration as their main marketing strategy while also focusing on market and product development. In other words, I think that they should focus on increasing their current market share for the current products they already make. But I think they should also work on making their current products appeal for other markets and also carry on making new products for their current

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