Okonkwo Prelims

The recommended procedure for business modelling is as follows:

1 Evaluate and understand the current situation of the brand and the

company.

2 Identify and define existing and/or potential problems the company is

facing or could face. This is summed up as the Strategic Challenge.

3 Formulate a set of alternative business strategies that could solve the

strategic challenge and analyse them. This will lead to the recognition of

one of the strategies as a viable alternative.

4 Create a Plan for the implementation of the recommended strategy(ies).

This involves checking internal competences and resources.

5 Identify performance measurement indicators to check the progress of the

implemented business strategies.

Each of the six identified steps will now be tackled. A unique graphical shape

will represent each step.

Level 1: evaluate and understand the current situation

The current situation of a company is the complete overview of the Internal,

Micro and External aspects of the business. This includes the features of the

internal organizationsuch as:

• The company’s core competences. They are the distinctive features
  that only the company possesses, which make it unique and dynamic
  and create competitive advantage in the long run. These inherent and
  specific attributes could also include a combination of integrated and
  applied knowledge, skills and attitudes, which competitors cannot easily
  copy.


• The company’s competitive leverage, i.e. the factors that give the company
  an edge in the marketplace. This could include size, financial position and
  market position.


• The company’s Key Success Factors (KSF), that is those actions that the
  company has taken so far that has earned it success and advancement in
  the market.


• The company’s strengths and weaknesses.


• The company’s manpower and core capabilities.


• The company’s organizational structure, culture and management style.

The current situation leads to an assessment of the micro environmentof the

company. This evaluation should normally include the following features:

• A thorough consumer market analysis, i.e. understanding who the
  consumers are, what their key characteristics and demographics are, where

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luxury fashion branding