Business Analysis Essay
No doubt that a successful business of any kind is one of the most important bases of the development of a prosperous country. It provides working places, manufacturing, technical development and living standards increase. All of these factors are the constituent parts of macroeconomics. Therefore, not less important is to investigate the microeconomics of the enterprise. A good example of a successful business is the US company named Tailored Brands Inc.
The founder of Men’s Wearhouse, which was the initial name of the organization, is George Zimmer, who incorporated the company on May 3, 1974. Within more than a 30-year period he has made a considerable impact in developing the company that has become the largest one in the industry. In 2013, Douglas Ewert became the CEO of Men’s Wearhouse and has been running the company rather successfully for already 2 years. In 2016 the company was restructured to a holding system with the name Tailored Brands, Inc.
According to the company’s official web-site, Tailored Brands Inc. is the largest retailer of men’s clothes and the most popular company that gives tuxedos to rent in the U.S. and Canada (Tailored Brands). They operate through the United States primarily under the brand names Men’s Wearhouse, previously the name of the whole company, K&G and under a brand name of Moores in Canada (Abrahams).There are approximately 1,754 stores of the company that provide different services and various types of clothes catering for any taste. Tailored Brands Inc. is divided into a lot of subsidiaries, such as Men’s Wearhouse, Moores Clothing for Men and K&G Fashion Superstores, Jos. A. Bank and others. These stores have a full differentiation of clothes, namely suits, separate parts of suits, shoes and accessories to meet the needs and desires of their customers. (Tailored Brands).
Regarding the United States Securities and Exchange Commission Report about Tailored Brands Inc., the organizational structure is presented as follows: the chief executive officer, Dough Ewert, is on the top of the structure. Besides, there are different departments headed by vice presidents and challenged with a range of various tasks. The departments are: an employee relations department, stores department, merchandising department, creative department, marketing and financial departments.
One of the basic 4Ps components is the product, which at the same time is the most important element of the business activity. As for the produce of the company, Tailored Brands, Inc. is engaged in two segments: retail and apparel. The first one delivers the goods with the help of its retail merchandising brands and Internet Websites. As for the apparel segment, it manufactures and sells corporate uniforms to workforces directly as well as the companies employing them by wholesale. The product range of the company is diverse. There are different types, styles, sizes and purposes of the clothes presented. Besides, the company’s service includes the tuxedo rental offered far not by all clothes retailers (Tailored Brands). Tailored Brands, Inc. largely targets the male consumers that are from 25 to 55 years old.
Today’s consumers are very demanding and exacting, they want the product to be made and delivered when, where and how they desire. That is why, companies have to develop a certain strategy in order to satisfy all needs of the existing customer and ideally, attract a new one along the way. As for the Tailored Brands’ ongoing strategies, the new and required by today’s market approach is an e-commerce strategy. Tailored Brands, Inc. is considering the fact that there is a strong growth of customers’ use of digital channels during the shopping experience. Aiming to improve the company’s competitiveness, the retailer has increased the expenses on the online purchasing development and the improvement of the effectiveness of mobile usage of the web-site. (Louis).
Another method that has been implemented by Tailored Brands, Inc is company extension. Starting from 2014, the management of the organization started to merge with other organizations of the apparel industry, one of them being Jos. A. Bank. Tailored Brands, Inc acquired all outstanding shares of Jos. A. Bank stock for $65 per share in cash, bringing the deal’s total value to $1.8 billion. In such a way Jos. A. Bank has become a part of Tailored Brands Holding. By the way, in January 2016, the top management of the company decided to apply a completely new strategy, where the system of the company was changed to a holding one.
Only a few industries have seen more change in recent years than men’s clothing. There is a strong trend to the popularization of men’s fashion. In addition, men started spending more on their outfits each year fostering the clothes producers to reconsider their marketing approaches (Ferdman). As the industry changes, the same thing happens with the companies belonging to the apparel industry, especially men’s wear segment. The company Tailored Brands is not an exception and it is facing a great challenge too.
According to the latest news, Tailored Brands is planning to close 250 Jos. A. Bank, and Men’s Wearhouse Stores to slash costs. Tailored Brands, Inc. has announced about the plan to close about 250 stores of the company as caused by the fact that the company suffered considerable losses during the previous year. It was published in the Financial Report for the last fiscal year. To resolve this current challenge the company has developed a particular method in which, the stores will be closed according to the priority of their non-profitability (Zaman).
As for effectiveness of the company, the fact of the constant growth of the market share and acquiring new companies demonstrates Tailored Brands’ financial stability, prosperity and, consequently, its efficiency. Nevertheless, there some improvements that have to be made. First of all, following the chosen strategy the company should eliminate all unprofitable stores to reduce the expenditures on their maintaining. Besides, after changing the company’s name, additional promotion tools are supposed to be launched in order to avoid the confusion of the old customers and increase the awareness of the potentially new clients about Tailored Brands. Finally, the last but not the least is the financial sphere. The last year’s financial performance shows a negative trend, since the amount of liabilities is more than the amount of assets.
Consequently, taking everything into account the conclusion to draw can be that the researched company Tailored Brands Inc. is a representative of the apparel industry that provides different types of clothes for men. It constantly accommodates to the change of trends of the economy and manages to run a rather successful business. However, there are some improvements that should be launched in order to make the company’s performance better.
Abrahams, Jeffrey. 101 Mission statements from top companies. Berkely, CA: Ten Speed Press, 2007. 24 May 2016
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Louis, Saint. “The Men’s Wearhouse Better Engages Customers, Improves Productivity with Smarter Commerce”. Perficient. N.p., n.d. Web. 25 May 2016.
“Financial Information”. Tailored Brands. N.p., 2016. Web. 24 May 2016.
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Zaman, Ghous. “Tailored Brands to Shut 250 Jos. A. Bank, Men’s Warehouse Stores to Slash Costs.” BidnessEtc. N.p., 11 March 2016. Web. 24 May 2016.