4 Susan Grant is in something of a dilemma. She has been invited to join the board of the

Question

4 Susan Grant is in something of a dilemma. She has been invited to join the board of the troubled Marlow Fashion

Group as a non-executive director, but is uncertain as to the level and nature of her contribution to the strategic

thinking of the Group.

The Marlow Fashion Group had been set up by a husband and wife team in the 1970s in an economically depressed

part of the UK. They produced a comprehensive range of women’s clothing built round the theme of traditional English

style. and elegance. The Group had the necessary skills to design, manufacture and retail its product range. The

Marlow brand was quickly established and the company built up a loyal network of suppliers, workers in the company

factory and franchised retailers spread around the world. Marlow Fashion Group’s products were able to command

premium prices in the world of fashion. Rodney and Betty Marlow ensured that their commitment to traditional values

created a strong family atmosphere in its network of partners and were reluctant to change this.

Unfortunately, changes in the market for women’s wear presented a major threat to Marlow Fashion. Firstly, women

had become a much more active part of the workforce and demanded smarter, more functional outfits to wear at work.

Marlow Fashion’s emphasis on soft, feminine styles became increasingly dated. Secondly, the tight control exercised

by Betty and Rodney Marlow and their commitment to control of design, manufacturing and retailing left them

vulnerable to competitors who focused on just one of these core activities. Thirdly, there was a reluctance by the

Marlows and their management team to acknowledge that a significant fall in sales and profits were as a result of a

fundamental shift in demand for women’s clothing. Finally, the share price of the company fell dramatically. Betty and

Rodney Marlow retained a significant minority ownership stake, but the company had had a new Chief Executive

Officer every year since 2000.

Required:

(a) Write a short report to Susan Grant identifying and explaining the strategic strengths and weaknesses in the

Marlow Fashion Group. (12 marks)

Answer 1

正确答案：
(a) To: Susan Grant
From:
Strategic strengths and weaknesses in Marlow Fashion Group
In carrying out a strategic strengths and weaknesses analysis one becomes aware that what were formerly strengths often
become weaknesses as the competitive environment changes over time. Strengths and weaknesses analysis is focused on
the internal side of the business and is usually linked to an external appraisal of the external opportunities and threats facing
the company. Marlow Fashion Group is clearly at a crisis point in its company life and needs a strategic turnaround in order
to survive. The business model that has served them so well is no longer appropriate to the fashion world in which they are
now competing. Rodney and Betty Marlow have built a highly vertically integrated model, which gave them considerable
control over the growth and development of the company. In terms of the value chain the relationship they built up with
suppliers was mutually supportive and clearly facilitated the global expansion of the group. Control was even tighter over the
design, manufacturing and retailing of the company’s products. Marlow Fashions had successfully developed a niche market
for its products based around traditional English values. This enabled it to expand successfully and develop a worldwide
reputation for design excellence and quality.
Unfortunately, its competitive environment has changed considerably, becoming increasingly competitive and hostile. The
economics of clothing manufacturing has changed, with most clothing retailers choosing to outsource the manufacture of their
clothes. Women’s tastes in clothing have also changed and there is no longer the market for the clothes Marlow Fashion sells.
The tight control exercised by the founders has prevented recognition of these changes. Marlow Fashion has continued to
pursue outdated designs and expensive manufacturing processes that had served it well in the past. There has been some
recognition of the strategic nature of the problems as indicated by the succession of CEOs since 2000 given the task of
preventing the fall in sales and cutting costs. Unfortunately, the changes in its environment have led to some uncertainty as
to whether Marlow Fashion is a brand, a manufacturer, a retailer or an integrated fashion company.
Overall, Marlow Fashion, from being in a strategically sound position, now requires a swift strategic turnaround. Its products
and markets have changed; the relationships it has with key stakeholders are no longer strengths and its value chain andsystem no longer deliver distinctive value to its customers.
Yours,