Alison Barnard Harvard Case Solution & Analysis

 Alison Barnard Case Solution

Introduction

Alison Barnard is a company based inU.S.A. It was founded in 2005. The company operates in the garment industry having more than 40 brands of women’s jeans and tees. It is located in the north side of end Boston. The company’s vision is to promote the entrepreneurial skills of women by advising, inspiring and connecting to global world. The owner, Alison Barnard,is a young, enthusiastic and highly educated business woman and caters her business through out the U.S.
Alison Barnard belongs to family that encourages the entrepreneurship activity. Both the parents had started with small enterprises. Moreover, Alison Barnard is talented, enthusiastic and has the skills which are necessary for an entrepreneur to grow. As she belongs to a family that promotes business therefore,she has a strong sense of understating the tactics of market. In addition, she is good at marketing and fashion designing plus she has skills of fashion trends and negotiating that supports and encourages her.
Garments business is increasing day by day in the U.S. Women's jeans and tees have become a fashion in the industry as they are aimed towards the women therefore,the company’s growth is increasing and expanding the product line however,Alison is still dealing with the untrained employees and she needs to hire more employees and expand the business. Another problem is being faced by the company i.e. low capital. The company doesn't have much capital in order to maintain the business structure. According to the survey that has been conducted that describes the fashion industry trend 9% women are brand conscious and more than 50 % seek for more option during shopping.
Alison has a strong sense to identify the need of the market and the target audience that help her to expand the business. Hiring new employees becomes difficult for her and that has become a barrier in expanding the business.
Identification of Key Issues
There are several hurdles faced by Alison Barnard, which creates a critical situation and this leads her to not being able to meet the company’s goal and objective. Moreover, the company has low capital. She does not have enough cash enough cash to run the operations of the company. This problem makes her realize to raise the capital structure whether to issue it from debt or raise the finance through equity in order to run the smooth business.
Moreover, low human resource in the company has become another issue that Alison Barnard is facing. The newly hired employees in the magement team don’t have that level of skills and expertise to take the responsibility of the given task. The problem is that the staff is absent and not constant for the job, hence it affects the whole operations. Alison Barnard has extra burden because she has to be present at the store all the time to entertain the customers.
The ERP has become the needs of today’s business therefore,the need arises to install the software that manages the accounting and financial issues. She is dependent on her uncle as he is dealing with the accounts of the company. Alison Barnard’s expertise helps the company in marketing and identifying the fashion trend. Her uncle does not encourage her to involve in the business operation there fore she is not able to get practical exposure of the operations.

PESTEL ANALYSIS

PESTEL provides the guideline about the political issue that creates barrier for the company based on economical, social, technical, environmental and legal procedures. After analyzing the PESTAL analysis, it helps the company to implement the new strategies.

(i) Political:

The country’s law and procedure help the people to grow their business. Each entrepreneur has equal rights to expand the business. Alison Barnard is working in a country where political environment encourages the businesses to grow in the market. The political condition is stable in the market which is the main reason in succession of the company in short period of time. There are strong civil rights. As Alison Barnard's a garment business, there are no strict laws or restrictions for operating it at any part of the country. Thus, this supports and motivates new businesses.................

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