How macro factors influence decision-making in the fashion industry value chain
Abstract
The complexity of the macroenvironment and value chains within the fashion industry has
increased the importance of strategic value chain configurations. The global influence and
awareness of macro factors has made it more challenging for decision-makers to integrate
macro-environmental changes in their strategic decisions. This thesis explores how macro
factors influence the decision-making process of a case company in the fashion industry and
how beneficial scenario planning is for systematising the planning of possible
reconfigurations.
Using semi-structured interviews with decision-makers this thesis explores how they process
information about the macroenvironment and transform it into value chain (re)configurations.
Our data indicates this process to be highly dependent on the focus and responsibilities of
decision-makers: strategy-setting roles are more occupied with developments in the
macroenvironment and the right strategy for the business while operational decision-makers
work with that strategy set and the realisation of macro-environmental changes to find the
most feasible and efficient value chain reconfigurations. Overall, the culture of the company,
its networks and strategic partners play a pivotal role in the influence macro factors have on
the value chain.
Looking into the possible effectiveness of using scenario planning to systematise future
planning, we again find a difference between strategy-setting and operational roles: due to
their involvement in setting the future direction of the value chain, strategy-setting
decision-makers can benefit more from scenario planning to contemplate various possible
scenarios and different strategic responses to them. For the operational teams scenario
planning might need more input than it grants benefits as their responsibilities depend on the
realisation of macro factors.
Degree
Master 2-years
Other description
MSc in International Business and Trade
Collections
View/ Open
Date
2023-07-19Author
Johnsson, Filippa
Kramer, Roos
Series/Report no.
Master Degree Project 2023:14
Language
eng