Developing Recovery Strategies For Gymshark Assignment Sample

Introduction Of Developing Recovery Strategies For Gymshark

Business in the modern world has been transformative and the research proposal here will address the driving forces that have made business extensively dynamic. The business scenario in the UK has been changing since Brexit and then it was severely hit by the Covid-19 pandemic. As a result of both issues, inflation rose and inflicted more issues, especially in the sustenance of the SMEs across the UK. The research proposal here will aim to provide an in-depth analysis of the business recovery strategies and the research that will be unfolded here.

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Background

The background of this proposal is majorly focused on business recovery and the strategic process of repairing an organisation's activities and its fiscal health following substantial setbacks such as economic downturns or inflations, natural catastrophes or the Covid-19 pandemic, or other catastrophic occurrences referred to as business recovery. It entails regaining sales, earnings, and general competitiveness while responding to changing conditions and client requirements.

Rationale

The primal purpose of this proposal is to illustrate the research and to address the issue of the ways by which businesses recover despite difficult situations like inflation, Brexit and a global pandemic. The rationale is to understand the roles businesses, especially Small to Medium-sized businesses have in recovering their sales and competitiveness in the market despite going through various global catastrophes. The rationale is to understand the dynamism of the business world and the recovery strategies undertaken by the businesses for their survival in the industry.

Aims and Objectives

Aims

To analyse the business recovery strategies that have been adopted by the UK-based SME Gymshark in the volatile times of the pandemic, inflation and Brexit. The research will aim to conduct a thorough and detailed investigation regarding the issue of recovery strategies of the

SME Gymshark in the volatile business context that impacted the business world of the UK.

Objectives

• To understand the issue of business recovery in the context of inflation, the Covid-19 pandemic, and Brexit.
• To analyse the situation of business recovery essentially in the context of an SME Gyamshark which is based in the UK.
• To identify the strategies that business recovery holistically provides to recover the businesses, with emphasis on Gymshark.
• The primal objective is to analyse the recovery strategies undertaken and the results deduced from the findings about SME Gymshark.

Research Questions

This section of the research proposal will advocate the research questions here. The main research question that the research will propagate is based on the objective or theme selected. How does developing recovery strategies help businesses to recover amidst catastrophic situations like the global pandemic, inflation and Brexit?

Brief Literature Review

This section of the research proposal aims to undertake a brief overview of the literature that has been procured. However, a detailed investigative approach to the literature and previously followed work will be followed in the research segment of the study.

In the research paper by Caballero-Morales (2021), focus has been made on the issue of recovery strategies and developing business recovery strategies in the context of the Covid-19 pandemic. The study here initially outlines the disruptive features, essentially the economic disruption that has resulted in the whole world. However, the study by Caballero-Morales (2021), has emphasised the deteriorating situation of the United Kingdom and their national economic stand as the GDP has been reduced by 3.0%. Apart from that, the study has outlined the difficult situation that SMEs went through during this time of the global pandemic. The study here, however, resulted in its momentary finding that developing business recovery strategies based on innovation acted as a survival feature for businesses in the difficult situation of the pandemic. In the social distancing context, innovative strategies like the usage of social media and digital platforms have been in use for maintaining business stability in the industry.

According to the study by Kumar, Seshadri, and Paramaiah, (2021), the focus has also been made on the disastrous impacts of the Covid-19 pandemic on the business world. The study here has comprehensively outlined the impact of the covid-19 pandemic in a variety of industries and as an explanation the paper has provided a detailed model of recovery strategies like “L, U, V, and W”. The models are designated with specificity against which crisis has been addressed and the implication of the model has taken place. The recommended model for business recovery in alignment with which the strategies are built is outlined to be a U-shaped model. The study by Kumar, Seshadri, and Paramaiah, (2021), describes that the U-shaped model recovers business by making it resilient and reducing the margins of financial loss.

In the study of ‌Lanzinho (2022), the focus has been made on the nation of the UK and the impact of Brexit and Covid-19 has also been outlined. Both the issues of Covid-19 and Brexit have been detrimental to the issue of business recovery. However, the study here by ‌Lanzinho (2022), has provided a few strategic implications that have been of greater value in reviving the businesses. The introduction of Sustainability in the industry might be one of the most essential strategic goals or recovery strategies that can be used to make businesses more competitive after Covid-19. Another strategy that this study argues here is the strategy of audience-focused approach by which the business will focus more on the needs of the audience making the business more appealing.

In the study of Morrish, and Jones, (2020), the focus has been provided majorly on the issue of disaster and the methods or models used by businesses to advocate and survive the cause. The study here has two broad divisions, one of which the study here encompasses the vitality of Entrepreneurial marketing or EM. And at the same time, the study also proposes a model named “EM Post-Disaster Business Recovery Framework” which is understood to be effective in the process. This framework model advocates for aligning opportunities in the business world, focusing on resources and other activities as developing business recovery strategies.

Lastly in the study of Laker, and Roulet, (2019), inflation and political uncertainty like Brexit have been outlined and the ways by which business can recover their aims during these incidents has also been underlined. The study has outlined that Brexit was a politically unstable and volatile time in which businesses have been impacted a lot. The study here advocates the business recovery strategies like the rebalancing strategy which might solve the problem.

Brief Methodology

This section will outline the brief methodological approach that will be analysed in the research paper. The research philosophy here will be adopted as “interpretivism” which is essentially a sociological method by which activities are analysed based on societal norms and beliefs. The most effective advantage of this approach is the results that are deduced are essentially valid in the context of society (Research-Methodology, 2023). The research approach that will be adopted is “inductive” in which the findings that will be reflected in the main research paper will be majorly based on observations and explanations will be traced as per the observations here (Research-Methodology, 2023). The research design will be followed as explanatory as all the details of the research aims, objectives, questions and findings will be explained as per the requirement. An explanatory research design will help the research paper to provide a comprehensive idea about not the theme but also the findings. The research strategy here that will be used is “qualitative” in which focus will be majorly made to observe and formulate data that holds qualitative value. The qualitative research methodology will help to understand the issue of business recovery in a greater depth that was otherwise not possible with a quantitative approach. Data collection in this matter will be done from both aspects, that is, from secondary and primary. The secondary data will be scholarly and peer-reviewed articles and journals, and the primary research will be conducted by formulating and using a series of interview questionnaires. This mixed methodology will be used in the research as it will benefit the understanding of the theme in a greater aspect. Lastly, the process of data analysis will be followed as thematic in which the findings of the information and deduced data will be divided or categorised as per the themes.

Ethical Considerations

The research will inform the participants and will also explain to them the merit of the research. The participants will be made aware that their statements are made public and at the same time, permission to make the statements public will be undertaken. The ethical sourcing of the secondary data will also be followed in the research. Plagiarism will not be followed and a proper acknowledgement will be provided of the taken resources from the designated sites in the Bibliography section.

Limitations

The research here will have multiple limitations and as a result of that the proposal here has outlined a few. The research here will lack the usage of quantitative data and as a result limitations regarding that issue can be found. Another limitation that the research will reflect is the primal focus on a single nation's SME. The Global pandemic has negative implications for the whole world and Brexit has also impacted the whole of the European business world. Inflation is a global occurrence, however, the focus of the research will be narrowed and only towards the SMEs of the UK. These are a few limitations that can be found.

Conclusion

The research proposal has outlined the major aspects that the research will uphold with focus and analysis. The p[roposal here has traced the required areas with essentiality in the literature review section and the aims and objectives part. The proposal has thus, instigated a thorough research in the theme which is developing business recovery strategies after covid, Brexit, and inflation, with an utmost focus on Gymshark.

Timeline Chart

Figure 1: Gantt Chart.

(Source: Created by the learner).

Part 2: Research

Introduction

In the present era of globalization companies in different countries and regions have faced a crisis due to Covid-19. However, post-pandemic companies and small and medium-sized enterprises are focusing on implementing recovery strategies for their respective business. Recovery strategies refer to the techniques and strategies for preventing the shutdown of a particular company. The primary purpose of firm recovery plans is to rapidly identify and treat the origins of the company's difficulties that may eventually lead to the company's collapse. In the present report, Gymshark has been chosen as one of the SMEs for illustrating the development of a recovery strategy for the business in the relevant marketplace. In the last few years, Gymshark has become an extremely well-known worldwide fitness clothing and accessories business thanks to its enormous rise in popularity. Gymshark was established in 2012 by Ben Francis and his pals in Birmingham, England. Since its inception, the company has made rapid strides toward being one of the most successful competitors in the fitness sector. It is good knowledge that Gymshark manufactures high-quality sportswear that blends practicality, comfort, and fashionable design. The product line includes leggings, shirts, shorts, hoodies, and accessories, all of which are created with the intention of catering to the requirements of a variety of different types of exercise activities. Furthermore, the report has been presented with a literature review section followed by a research methodology. The main findings of the research have also been demonstrated in the present report. A recommendation and a conclusion section have also been included which signifies the implication of the research.

Methodology

In the present research, Saunders Onion Model has been applied for identifying the elements of the methodology. Research philosophy, approach, design, strategy, data collection, and data analysis are some of the identified elements that have been applied in the research.

An interpretivism research philosophy has been used in the research. The researcher is now able to dive deeper into the experiences and perspectives of Gymshark consumers because of interpretivism. The investigator may assess consumers' impressions of Gymshark's brand, goods, and services, as well as their expectations and ideas for recovery tactics, by conducting interviews (Pandey and Pandey, 2021). These methods allow the researcher to collect qualitative data. The interpretive approach recognizes the significance of context as well as the singularity of each circumstance. The investigator might evaluate the unique conditions underlying Gymshark's issues and the reasons for the need for rehabilitation solutions by employing an interpretive lens.

Among inductive and deductive research approaches inductive has been taken into consideration for the research. The inductive method places a strong emphasis on acquiring a comprehensive grasp of the particular environment and the conditions that surround Gymshark (Mishra, S.B. and Alok, 2022). It fosters research into the organization's internal elements, such as its strengths and weaknesses, resources and competencies, as well as external ones, such as the competitive landscape of the industry, the preferences of customers, and the circumstances of the economy after the Covid-19 phase.

Furthermore, an exploratory research design has been applied to the research by the investigator. Exploratory research enables the researcher to investigate several aspects of the industry, including potential market prospects, competitive tactics, and industry trends. Gymshark is able to uncover new trends that may have an effect on its recovery methods by doing an analysis of the larger market environment (Al-Ababneh, 2020). For instance, if Gymshark investigated upcoming fitness trends, changes in customer behavior after the pandemic era, or improvements in technology, it may improve its approach to recuperation and differentiate itself from other businesses in the industry. The goal of exploratory research is to encourage alternative ways of approaching problems and to promote creative thinking.

A qualitative research strategy has been applied to the research. The researcher is able to discover difficulties or pain points reported by Gymshark clients because of the open-ended investigation that is made possible by qualitative research. The organization is able to establish more focused plans to solve these problems after it has identified them. This will result in increased customer satisfaction and loyalty (Patel and Patel, 2019). Significant changes in consumer behaviors, such as buying habits, preferences for online or in-store experiences, and the reasons for purchasing sportswear, have been brought about as a direct result of the epidemic. Through qualitative research, the investigator is able to focus further into these changes, identify new patterns, and alter Gymshark's recovery tactics in accordance with those trends.

Primary and secondary data collection processes have been used for collecting data and evidence about the research topic. In collecting primary data and information, an interview has been conducted with the researcher. In selecting the sample size for performing the interview, the investigator has chosen 5 managers from different companies in the retail industry. On the other hand, academic websites have also been browsed by the researcher to collect secondary information and evidence. Furthermore, annual reports of Gymshark and magazines, articles, and newspapers have also been collected for illustrating secondary information on the topic.

In analyzing the collected data, a thematic data analysis method has been used by the researcher. In the post-pandemic age, readers and audiences are able to recognize the changing demands and aspirations of clients with the use of thematic analysis. Gymshark is able to adapt its recovery methods to the evolving needs of its customers since the company categorizes topics relating to customers' health and well-being as well as convenience and comfort.

Main body

Marketing initiatives adopted by retail businesses after COVID-19

Marketing is the activity, the collection of information, and the processes that are aimed at producing, conveying, and giving interactions that have value for buyers, clients, collaborators, and society in general. Nevertheless, marketing is both a function of an organization and the collection of procedures that are used to develop, capture, convey, and provide value to customers and clients (de Oliveira et al., 2022). In addition, marketing is the process of managing one's connection with customers in a manner that is beneficial to both the firm and the people engaged in the relationship. In developing strategies, retail companies along with Gymshark have focused on online and digital presence for marketing and promoting its products after the pandemic era (Pedersen and Ritter, 2020).

Several companies in the retail industry have either completely halted their pay-per-click (PPC) advertising operations or significantly reduced their budgets. This leaves a significant possibility for organizations to win pay-per-click auctions and obtain attention for their advertising at a cost that is more manageable (Basis Technologies, 2020). It can seem contradictory to invest more in pay-per-click advertising (PPC) when overall conversion rates are down, but the fact is that the decline in cost-per-click (CPC) is far higher than the drop in conversions. Consequently, increasing the PPC spending could really be a good idea (Gaur et al., 2021).

Increasing social media presence is another marketing strategy for developing recovery strategies for businesses (Blazin, 2022). With a strong social media presence, businesses in the retail industry such as Gymshark are able to gather customer's attention from different countries and regions. Furthermore, the brand is able to promote its product more effectively and efficiently with the use of social media tools. This enables the business to increase its customer and uplift the demand for its products among the clients and consumers in the marketplace (Bhattacharyya and Thakre, 2021).

Role of Government in Establishing Recovery Strategies for Business

The unexpected disruption to the economy caused by the COVID-19 epidemic has forced governments to provide unprecedented levels of financial assistance for employment, and enterprises that are struggling. These measures have been essential to the management of the economic effect on people and enterprises, including the possibility of default by essentially viable firms, and to the stabilization of circumstances throughout the broader credit market (Berawi, 2020). The vast majority of government assistance schemes have often been delivered in the form of loans or guarantees of debt. The loan terms may include longer payback durations and more advantageous interest rates than those that would be accessible on the market, and the repayment alternatives may be more flexible in certain circumstances. Even though they were only used a small percentage of the time, debt guarantees were one of the aspects of successful programs that were responsible for boosting market confidence, which in turn enabled a more robust recovery and reduced cash outflows (Moosavi and Hosseini, 2021).

Governments in the United Kingdom are also encouraging incoming foreign direct investment and stemming the loss of outgoing FDI. This is another role of the government which is helping Gymshark to develop recovery strategies. In the account of the Brexit scenario, the government in the country is replacing the unnecessarily bureaucratic EU Infrastructure Funds with a new UK Shared Prosperity Fund that will be used to link together the entirety of the United Kingdom, combating poor results and promoting the potential for Gymshark (Rozhkov et al., 2022). The regulatory bodies are establishing freeports, which will develop into hubs of entrepreneurial activity, commerce, and investment, and they are working to ensure that businesses in the United Kingdom will be able to trade freely in every region of the country while still adhering to the highest global standards for their customers and employees.

Collaboration and partnership in developing recovery strategies

Collaboration and partnership enable Gymshark to increase its online presence in the relevant marketplace along with creating a positive brand image. It is possible for Gymshark to work together with other businesses in the health and fitness sector that provide related products. For instance, entering into a partnership with a firm that specializes in nutrition or one that makes exercise equipment might result in the creation of chances for cross-promotion and give additional value to the clients (D'Auria and De Smet, 2020). In order to broaden its offline presence, Gymshark may investigate the possibility of forming partnerships with well-known stores. This may include the opening of co-branded pop-up shops or shop-in-shop partnerships, both of which enable Gymshark to reach new client groups while simultaneously benefiting from the partner retailer's current customer base. It is possible for Gymshark to work together with local fitness groups, clubs, or fitness studios to put on events or sponsor fitness competitions. By participating actively in the community, Gymshark is able to cultivate customer loyalty to the brand and establish meaningful relationships with its intended audience.

In increasing the productivity of the business during the phase of pandemic, Gymshark has connected with vaynerMedia which has allowed the business to double its employee strength of the business (How Gymshark doubled its workforce during COVID-19, 2021). This has allowed the business to develop a recovery strategy through which the company has been able to recover its productivity loss which has been experienced by the business during the pandemic.

Literature review

Covid-19 has made significant impacts on the SMEs in the country resulting in a decrease of workforce. This has led to a lack of productivity in the supply chain unit of different businesses in the UK. The Joint Response Staff (JRS) of the United Kingdom is one of the most successful answers to the present crisis; nonetheless, it unavoidably leaves major gaps. There are around 5 million people in the UK who are self-employed, while another 1 million are engaged in temporary positions, within the gig economy, or on zero-hours contracts. It took a couple of weeks for a second policy that was focused on the self-employed to be devised, and even then it failed to effectively include many people. Because the program failed to include these groups, around 20% of the workforce in the UK was not covered.

There is no denying that the Job Retention Scheme is an audacious policy proposal; nonetheless, there are issues with it. The plan's potential success in the years to come is of much greater significance. In the beginning, government officials had high hopes for a V-shaped recovery, which would be a rapid rebound from the current recession (Mayhew and Anand, 2020). This was contingent upon what now seem to be too optimistic ideas of the speed with which the lockdown might be removed and the economy could return to 'normal. Increasing cash flows is one of the focuses of SMEs in developing recovery strategies for their respective business. It is advised that digital resources be used (mobile communication, online tutorials, etc.) in order to improve on the invention of solutions in a collaborative manner, to know flexible methods to enhance cash flow inside the SME, and to channel resources for activities that generate value. This is vital for innovation as it relates to re-engineering and the creation of new products.

According to Caballero-Morales (2021), there is an urgent need to compile the majority of the knowledge pertaining to company management, strategic planning, and innovation in order to devise alternatives for small and medium-sized businesses (SMEs) to strengthen their business models for various markets and limits. In response to this need, the research community has published debates addressing the effect that the COVID-19 pandemic would have on enterprises, as well as reviews of previously published studies that might give advice for SMEs.

According to Kumar et al., (2021), the lockdown made it difficult for individuals to move about, which resulted in fewer people buying consumer products. As a direct consequence of this, e-commerce platforms saw a rise in the number of orders placed for various consumer items. Because the lockdown was easier to implement, the supply chain and logistics industries saw a partial opening and immediately began providing products and services to clients. The demand for items sold on e-commerce platforms increased dramatically as a result of limitations that were only in place temporarily.

Recovery of the supply chain is an essential component of supply chain catastrophe management and resilience. When trying to devise ways to recover from the effects of interruptions on supply chains, companies often face a great deal of difficulty. According to Paul et al., (2021), businesses could have more difficult obstacles while attempting to recover from significant outbreaks, such as epidemics or pandemics. This is due to the fact that epidemics of this kind have significant and long-lasting effects on organizations and their operations, and as a result, need typically more strong measures for recovery. Therefore, it is essential to identify possible supply chain recovery obstacles and the effect they have on post-disaster recovery during a big epidemic. This is done to ensure that supply networks devise the proper strategies to overcome such challenges.

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Conclusion

It can be concluded that the era of the pandemic and Brexit has resulted in both benefits and challenges for Gymshark in developing recovery strategies for the business. It has been found that Gymshark has been successful in increasing its productivity by creating a more diverse workforce during the pandemic. Collaboration and partnership with other firms and business has uplifted the production scenario of the company. On the other hand, the findings also illustrate that the research is based on exploratory research ideas. This has enabled the researcher to identify more additional information about recovery strategies and the ways they are applied to the business process of Gymshark.

Saunders's Onion model has enabled the researcher to identify the relevant and specific methods which can be used in the research for illustrating the topic. With both primary and secondary data collection processes the investigator has been abv to gather numerous ideas and information about the research topic. This has allowed the researcher to present authentic and relevant information to the readers and audiences. The findings of the topic also present the role of the government in supporting Gymshark in developing recovery strategies in mitigating the impacts of the pandemic and Brexit. Retail business has been able to gather financial resources through the support and assistance of the governments in the UK.

Self-reflection

In performing the research study, one of the primary objectives was to analyze the development of recovery strategies for uplifting the operational and business environment of Gymshark in the retail industry. In order to collect data, the researcher made use of a variety of research methodologies, including interviews and qualitative approaches. After giving it some thought, I have come to the conclusion that the research methodologies that were used were, on the whole, helpful in providing a full insight into the topic to the readers and audiences. In terms of qualitative methodologies, the in-depth insights provided by the interviews as well as the participants were really beneficial. On the other hand, I recently came to the realization that I would have benefited from obtaining a more comprehensive viewpoint if I had included a wider variety of individuals. I would have been able to reveal a greater diversity of consumer perceptions and experiences with the involvement of a comprehensive viewpoint. One of the lessons I have learned is the involvement of the types of data collection methods. Using surveys instead of interviews would have helped me in gaining a more clear perception of the recovery strategies that have been used by Gymshark after Covid-19.

Recommendation

Gymshark needs to focus more effectively on collaboration and partnership in developing recovery strategies with ease. The pandemic has led to negative impacts on several areas of the business including finance, supply chain, and growth of the employees and suppliers. By collaborating with international suppliers and business organizations the company can mitigate and recover from the operational and financial issues and establish itself as a prominent brand in the market. The business can utilize technologies for data analytics to acquire insights into the shifting tastes and purchase habits of consumers so that they can better serve the clients. The decision-making processes that may benefit from this knowledge include product line planning, handling inventory, and customized marketing efforts. Retailers are able to address the needs of their customers more efficiently by employing data to make educated strategic decisions. Construct supply chains that are resistant to disruption by developing a diversity of providers and many alternative sourcing choices. Maintaining good working relationships with important partners to guarantee the timely and accurate delivery of items is another recommended action that can be implemented for developing recovery strategies for Gymshark. Installing inventory control systems that offer immediate insight and forecasting of demand capabilities are important steps to take in order to achieve optimal stock levels and reduce interruptions.

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