Assume you have been appointed as a Strategic Manager for Foschini Group (TFG). Present a clear SWOT analysis for the company and assess how the results of a SWOT analysis can assist an organisation in strategy formulation. Listed retailer The Foschini Group (TFG) says that the final Competition Commission approval for itsacquisition of Tapestry Home Brands will allow it to apply its localisation strategy to furniture.manufacturing, with significant job-creation and supply chain multipliers for the country. The TapestryHome Brands Group is a retailer of furniture, linen, fabrics, and home decor through its trading brands- Dial-a-Bed, Volpes, Coricraft & The Bed Store. With the acquisition concluded, TFG said it is alreadyexploring opportunities to further expand Tapestry's manufacturing capabilities in furniture, bedding,and home textiles to supply TFG's homeware brands, particularly @home, with a view to substitutingproducts that are currently imported with locally made goods."In all three of the Tapestry factories, we plan to further support their own manufacturing demand aswell as increase production to cater for the ongoing growth of TFG's existing homeware businesses.With some modest capital expenditure investments into these manufacturing facilities, we willsignificantly expand their capacity to cater for this increased demand," said TFG CEO AnthonyThunström. "As with the local manufacture of apparel, we expect to realise similar commercialbenefits from local production of homeware such as sofas, linen, and beds, including improved cashflow and reduced inventory holding requirements, while avoiding global supply chain disruptions andelevated freight costs. We will build on Tapestry's established vertically integrated, direct-to-consumer business model as we unlock synergies with the TFG businesses," Thunström said.TFG said it has also committed in its agreement with the Competition Commission to open a minimumof 35 new stores within three years under the four Tapestry brands - Coricraft, Dial-a-Bed, The BedStore and Volpes. "We expect to comfortably overshoot this target as we bring TFG's scale andresources to bear on growing the Tapestry businesses, and we have already identified the need for anadditional 17 stores for Volpes alone," said Shani Naidoo, TFG Group director for the HomewareDivision. "As an example of the kind of impact TFG has on businesses it has acquired, we have grownemployment at Cotton Traders, the manufacturing arm of the Granny Goose business, by 20% within3less than a year since we bought that company and half of its production is now going into TFG stores.The factory is running at full capacity, and we are planning a R20 million investment in expanding thefactory," Naidoo said."By expanding the same vertical integration model which has been so successful in our apparelbusiness to our Home Division, TFG is well set following the Tapestry acquisition to reindustrialise thehomeware manufacturing sector in South Africa and grow local skills and employment," saidThunström. TFG already sources 73% of apparel locally, and its intention is to bring more furnitureproduction into South Africa as well."Current plans for expanding our local clothing manufacturing capability and building out our storefootprint entail the creation of at least 10,000 new employment opportunities up to 2026, beforeconsidering our growth plans for the Tapestry brands," said Thunström. TFG said it expects to doubleits own local, quick response clothing production from 15 million units in FY22 to 31 million units byFY26. This is on top of the locally manufactured apparel that the group already sources. "At the sametime, we are supporting reindustrialisation, skills development, and employment creation through ourparticipation in the government's master plan for Retail Clothing, Textile, Footwear and Leather."Significantly, TFG will also lift wages for more than 10 000 of our customer-facing employees to 7%above the sectoral determined minimum," Thunström said. "This is a significant step in our investmentbehind fair and responsible pay and one that the group will continue to improve over time. It alsoforms part of a broader package of initiatives aimed at improving employee pay and benefits." "Onthe apparel front, TFG has committed to developing several manufacturing business units in thecurrent year, consisting of adding jobs within our own factories as well as within our strategic supplierswho largely produce exclusively for TFG."For each one million units of quick response apparel, we need two more MBUS, each withapproximately 200 employees, producing an average of 4,200 units a day for 247 days a year.Ultimately, we need the equivalent of 30 MBUS to achieve the FY26 local manufacture target of 31million units," said TFG's Merchandise and Supply Chain MD, Graham Choice. "This will generate morethan 1,820 new employment opportunities in our own factories and another 4,190 in those of ourstrategic suppliers, for a total of more than 6,000 new employment opportunities in clothingmanufacture alone."TFG said its growth plans in manufacturing are mirrored by an equally aggressive expansion in its storefootprint. Work is already underway to build out 342 stores, representing more than 92,000m2 of newretail space. With R600 million in capex already committed to this work, TFG said it could spend asmuch as R1 billion depending on continuing site identification, with an expected bump revenue ofabout R3.8 billion. With an average of six employees per outlet, the store expansion initiative can beexpected to generate more than 2,100 new employment opportunities.

Question

Assume you have been appointed as a Strategic Manager for Foschini Group (TFG). Present a clear SWOT analysis for the company and assess how the results of a SWOT analysis can assist an organisation in strategy formulation. Listed retailer The Foschini Group (TFG) says that the final Competition Commission approval for itsacquisition of Tapestry Home Brands will allow it to apply its localisation strategy to furniture.manufacturing, with significant job-creation and supply chain multipliers for the country. The TapestryHome Brands Group is a retailer of furniture, linen, fabrics, and home decor through its trading brands- Dial-a-Bed, Volpes, Coricraft & The Bed Store. With the acquisition concluded, TFG said it is alreadyexploring opportunities to further expand Tapestry's manufacturing capabilities in furniture, bedding,and home textiles to supply TFG's homeware brands, particularly @home, with a view to substitutingproducts that are currently imported with locally made goods.&#34;In all three of the Tapestry factories, we plan to further support their own manufacturing demand aswell as increase production to cater for the ongoing growth of TFG's existing homeware businesses.With some modest capital expenditure investments into these manufacturing facilities, we willsignificantly expand their capacity to cater for this increased demand,&#34; said TFG CEO AnthonyThunström. &#34;As with the local manufacture of apparel, we expect to realise similar commercialbenefits from local production of homeware such as sofas, linen, and beds, including improved cashflow and reduced inventory holding requirements, while avoiding global supply chain disruptions andelevated freight costs. We will build on Tapestry's established vertically integrated, direct-to-consumer business model as we unlock synergies with the TFG businesses,&#34; Thunström said.TFG said it has also committed in its agreement with the Competition Commission to open a minimumof 35 new stores within three years under the four Tapestry brands - Coricraft, Dial-a-Bed, The BedStore and Volpes. &#34;We expect to comfortably overshoot this target as we bring TFG's scale andresources to bear on growing the Tapestry businesses, and we have already identified the need for anadditional 17 stores for Volpes alone,&#34; said Shani Naidoo, TFG Group director for the HomewareDivision. &#34;As an example of the kind of impact TFG has on businesses it has acquired, we have grownemployment at Cotton Traders, the manufacturing arm of the Granny Goose business, by 20% within3less than a year since we bought that company and half of its production is now going into TFG stores.The factory is running at full capacity, and we are planning a R20 million investment in expanding thefactory,&#34; Naidoo said.&#34;By expanding the same vertical integration model which has been so successful in our apparelbusiness to our Home Division, TFG is well set following the Tapestry acquisition to reindustrialise thehomeware manufacturing sector in South Africa and grow local skills and employment,&#34; saidThunström. TFG already sources 73% of apparel locally, and its intention is to bring more furnitureproduction into South Africa as well.&#34;Current plans for expanding our local clothing manufacturing capability and building out our storefootprint entail the creation of at least 10,000 new employment opportunities up to 2026, beforeconsidering our growth plans for the Tapestry brands,&#34; said Thunström. TFG said it expects to doubleits own local, quick response clothing production from 15 million units in FY22 to 31 million units byFY26. This is on top of the locally manufactured apparel that the group already sources. &#34;At the sametime, we are supporting reindustrialisation, skills development, and employment creation through ourparticipation in the government's master plan for Retail Clothing, Textile, Footwear and Leather.&#34;Significantly, TFG will also lift wages for more than 10 000 of our customer-facing employees to 7%above the sectoral determined minimum,&#34; Thunström said. &#34;This is a significant step in our investmentbehind fair and responsible pay and one that the group will continue to improve over time. It alsoforms part of a broader package of initiatives aimed at improving employee pay and benefits.&#34; &#34;Onthe apparel front, TFG has committed to developing several manufacturing business units in thecurrent year, consisting of adding jobs within our own factories as well as within our strategic supplierswho largely produce exclusively for TFG.&#34;For each one million units of quick response apparel, we need two more MBUS, each withapproximately 200 employees, producing an average of 4,200 units a day for 247 days a year.Ultimately, we need the equivalent of 30 MBUS to achieve the FY26 local manufacture target of 31million units,&#34; said TFG's Merchandise and Supply Chain MD, Graham Choice. &#34;This will generate morethan 1,820 new employment opportunities in our own factories and another 4,190 in those of ourstrategic suppliers, for a total of more than 6,000 new employment opportunities in clothingmanufacture alone.&#34;TFG said its growth plans in manufacturing are mirrored by an equally aggressive expansion in its storefootprint. Work is already underway to build out 342 stores, representing more than 92,000m2 of newretail space. With R600 million in capex already committed to this work, TFG said it could spend asmuch as R1 billion depending on continuing site identification, with an expected bump revenue ofabout R3.8 billion. With an average of six employees per outlet, the store expansion initiative can beexpected to generate more than 2,100 new employment opportunities.

Accepted Answer

Business analysis is the practice of identifying business needs and determining solutions to…