Question: how would you conclude the below: Background: It is important to understand the background of TFG before delving into the JD Sports franchise venture, as
how would you conclude the below:
Background:
It is important to understand the background of TFG before delving into the JD Sports franchise venture, as TFGs mission statement, values and business strategy is what would have initiated this deal in the first place and made them the best choice for the UKs JD Sports. Brand first is one of TFGs strategic pillars.
TFG was established in and listed on the JSE in Over a period of years, TFG have acquired various business in the CFTA clothing footwear, textiles and apparel space to set them up to be a South African powerhouse retailer, while expanding into other countries and continents, giving them a global footprint and international clout.
TFGs mission statement is to be the leading fashion lifestyle retailer in Africa whilst growing their international footprint. TFGs talented and engaged people are always be guided by ethical values and social conscience.
TFGs core values are:
Purpose: Inspire their customers to live their best lives.
Vision: To create the most remarkable omnichannel experiences for our customers.
Values: Put their customers first.
Work smart and fast.
Do the right thing.
This roadmap is bolstered by their vision statement with the acronym BOLTS:
Build out diversify high brand equity businesses
Optimise sourcing mix and supply chain efficiency
Leverage their assets of customer data base, store footprint, product assortment and talent.
Transform into a true omnichannel retailer.
Sustain TFG and their stakeholders into the future.
TFG has conducted extensive research on global sustainability initiatives and social deficiencies to establish its goals. However, I have a concern about the depth of their focus on South Africa. There seems to be a lack of clear implementation strategies to address the power crisis affecting their operations. I believe it would be beneficial for TFG to invest in solar electricity generation, particularly in their warehousing and head office environments, and especially in smaller town stores located in strip malls and standalone stores that are not governed by mall owners. This approach would help the company become selfsufficient and reduce reliance on an unstable grid, while also supporting clean, renewable energy initiatives in line with the UN's Goal
TFG operates on continents, ie Africa, North America, Central America, Europe, Australia, in over outlets, a cross fashion lifestyle brands, with over employees.
TFG is a retail company that sells ranges of ladies, mens and childrens apparel, footwear, accessories and cosmetics as well as homeware and furniture, targeting market segments from the youth though to middle age, from LSM through their various chains and brands. They do this via brick and mortar, as well as online ecommerce in Bash.
TFG operates with a dual board structure:
Supervisory Board members:
Responsibilities: Ultimate accountability for TFGs strategy, direction, leadership, governance, and overall performance.
Oversight Areas: Development, approval, and updating of TFGs vision, mission, value statements, and policies.
Goals: Focuses on economic, environmental, and social impacts.
Operating Board members:
Responsibilities: Formulating the group's strategy and managing the daily operations of the retail trading and services divisions.
The reason this business will be successful is due to many reasons; their diverse brand portfolio, along with their strategic acquisitions and expansion, their strong market presence, their customercentric approach, their ability to adapt to change and embrace technological advancements, their effective supply chain management, their employee development and engagement, their commitment to sustainability as well as social responsibility, and last but not least a strong, experienced leadership team, committed to their vision.
Planning
I feel that TFG has a clear guideline plan, for their organisation. This strategic plan, developed by their top management, is a clear year plan, which is inspirational to their employees, measurable and therefore easy to track, as well as realistic. The first step of the strategic plan is the SWOT analysis for the group and if a franchise agreement fits into the groups potential strategy. Below is the SWOT analysis I would do before entering this franchise:
SWOT ANALYSIS TFG figure
INTERNAL FACTORS
STRENGTHS WEAKNESSES
Diversified brand portfolio with retail brands across a range of markets, including fashion, cosmetics and home products. TFG has a significant presence in the CFTA retail industry.
Established market presence TFG has a significant market presence in South Africa and is growing internationally.
Efficient supply chain TFGs effective supply chain management assists in reducing cost of goods on hand, controlling production and delivery, which increases custome
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