Introduction
The British clothing industry is experiencing a low-profit margin, which is attributed to a number of factors. Therefore, investments should be made with special consideration. Strategic management plays a vital role in determining the success of companies in the UK during this deflationary crisis (Gibbons, Scott & Fhionnlaoich 205). The decisions made by managers affect how the organization will be able to achieve their goals (Robbins & Coulter 2007). It includes organizational structure, leadership style, and corporate culture. In order to achieve a competitive advantage, companies use their workers as a tool to help them achieve their goals.
In terms of secondary sources, it is important to consider objective data concerning the marketplace competition and the companies financial performance, whereas the primary research in a form of a survey was used to evaluate customers appeal. Competition has increased in the UK market because it is easier for foreign companies to enter. Peacock (203) noted that the UK is open for businesses because foreigners own most of the big firms in Lond
on (Peacock 203).
For example, Chinese companies are estimated to have acquired UK private firms worth £2bn in 2008 through mergers and acquisitions (Olivia 204). The results of the conducted survey were used in the discussion of Topshop and Matalans brand image and the SWOT analysis.
Overall, the objective of this report is to present a critical evaluating of the current performance of Topshop and Matalan and to assess the advantages and disadvantages associated with an investment in these companies.
Matalan Company Profile
Matalan is one of the leading clothing companies in the UK. It was established in 985 with the concept of US shopping club. Matalan retail outlets offer a wide range of modern fashion and brand clothes at exceptional prices. The company has expanded its business operation from eight stores in the last 0 years, to 27 stores by 20. Matalan also plans to acquire another 00 stores in the next three years. Most of the stores average 30, 000 square feet. The stores are divided into four departments, including Homes, Mens, and Womens Wear (Matalan Year End Financial Statements 206).