Strategic analysis of a small retail business

This paper is a strategic analysis of a small silk underwear and sleepwear business. It has been prepared to provide the owner insight into the many factors affecting the industry and her firm's business performance. The analysis is designed to answer two key questions: Should the business continue to operate, and if so how? Could the business be sold? The analysis revealed that, in its current financial state, the company is not an attractive purchase target. Instead, the owner must take immediate steps to achieve, sustain and improve profitability in order to minimize the amount of external financing required and to avoid a distress sale. A niche differentiation strategy combined with a strategic focus on a reduced set of business opportunities is recommended. In addition, sound accounting and financial management practices are required in order to establish an attractive financial track record.