Background information on New Look
The main aim of all business is to make profit, whether short or long term profit. All businesses set objectives that govern the way they operate. The following are the general objectives of all businesses. Making a profit This is the one of the most important of a business. This helps the owner to reinvest back the money, which increase the capital of the business. Businesses operate well in order to achieve Break Even point. This is when total revenue equals to total cost. When business achieves Break Even this implies the business is surviving and therefore has achieve one of the objectives. Increasing Sales or Market Share
If a business aims to maximise sales, this simply means it wants to sell as many goods as possible. Every business got it different way of increasing sales such as reducing the price, spending more on adverting and promotion or offering additional services to the customers. Surviving Many business aim to survive by reducing cost and increasing profits. Surviving is about continuing to exist today, tomorrow and into the foreseeable future. Providing goods or services to the community All business provides goods or services for instance New Look provide goods and services such
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E2 B Objectives of New Look New Look has go a mission statement which states “New Look encourages teamwork to produce exceptional results through investment in and development of our people and processes and by constantly challenging what we do enabling us to understand our customers and exceed their expectations sharing success with our employees and investors”. The main objective of New Look is to make profit. By doing this New Look produce and sell world class female fashion and also improve sales by reducing the prices of some items, putting them on sales on promotion etc.
In order for New Look to make or increase their profits, the company got a brand name on all the items they sell. This helps the customers to recognise the company. All New Look stores got the same image for e. g. the layout of the store and the clothes they sell. The objective for beating the competition is cutting down the high street prices. They do this through promotion and also markdowns. New Look try to provide the best goods and services that they can and in that way they manage to gain the objective of the business.
Keeping customers is very important to New Look and they do that by satisfying their want and needs. New Look provides after sale service like refund and exchange. The refund and exchange policy which states that “we are happy to refund your goods within 28 days of purchase with the receipt”. Another objective of New Look is to increase sale therefore New Look buy in large quantities as well as getting a discount from their suppliers in order to achieve their cost control. The shareholders of New Look plough back their profit since they want to increase their market share.
The objective for increasing sales is also by promoting account card. New Look does this by giving 10% off from the first purchase if you open the store card. This helps the company to make more sales because the customer tend to spend more. The company do this by advertising around the store like “open New Look account card an get 10% off”. The company has a policy of continuous employee development. This begins with an induction programme and basic training to ensure that as a new employee you settle into the company and begin to make a contribution to its success as quickly as possible.
The staff are also trained regularly on how to explain the benefit on the store card. Charitable donation: New Look is active within the community, supporting various requests for charity and sponsorship donations. New Look has increase local links in relation to education, health, business, and sport. The company also supports national charities as selected by employees and for whom they undertake activities to raise funds. Internationally, New Look provides clothing and accessories to areas of South Africa and Bosnia. New Look aims to maintain its support within the local community throughout the next financial year.