Sharpest Communications Briefing on Prpr

Sharpest Communications Briefing on PRPR

As one of the largest, global public relations agencies, Sharpest Communications is always on the lookout for new opportunities for growth. One area being considered for expansion is the fashion and lifestyle area, as a complement to their existing five global practices -- brand marketing, corporate, healthcare, food and nutrition, and technology. As such, Sharpest Communications is considering the acquisition of PRPR, a growing PR firm that currently specializes in fashion, events, entertainment, and music. However, to fully consider this expansion opportunity, Sharpest Communications must first investigate the economic climate in the UK for fashion, as well as the competitive environment for marketing consultancies and the media in general.

The Political Environment:

The political environment affecting the fashion industry, as well as marketing consultancies and media industries, must be taken into consideration if Sharpest Communications wants to make a well-informed decision when considering the acquisition of PRPR. The U.K.'s current Labour government has had challenges much like other developed nations around the globe. There is a definite call for change. Stimulus legislation, such as the government sponsored program to boost auto sales, has had a small effect on the economy. However, more needs to be done. As a G20 nation, the U.K. recently banded with its counterparts in the decision to continue stimulus package funding ("G20 summit," 2009). This will likely mean continued tax cuts for the U.K., which will hopefully continue to spur the economy, both at home and abroad.

Economic Factors:

As mentioned, like many developed nations, the U.K. has been subjected to the economic crises that has negatively affected many nations, beginning in August 2007. Since that time, the sterling has depreciated significantly. This depreciation may potentially impact CPI inflation prospects and reflects a wide range of factors concerning the real economy and the financial markets. Astley, Smith and Pain (2009) note that this depreciation also denotes a perceived riskiness in U.K. Assets, with a need for the economy to rebalance. In addition, increased inflation has seen a related increase in costs of doing business across the board. A weakening sterling will mean more cost competitive exported products, yet will also mean an increase in costs for imported products and raw materials. Ten percent of Birtain's GDP comes from the "creative" industries, which includes fashion (Walker, 2008) and these industries will be strongly affected bt the economic uneasy still being experienced. In addition to economic factors, social factors too will play a role in deciding whether or not to acquire PRPR.

Social Factors:

There are a variety of social trends that will likely affect both the fashion industry, as well as the marketing consultancies and media industries. The first is the social trend to be more thrifty. The era of spending money consumer's don't have is waning and, as such, consumers are looking for not only cost-effective products and services, but also making do with items they already have. The second trend is globalization. Thanks to continued globalization, the U.K. continues to be an increasingly diverse country. Lastly, a third social trend is to expect corporate social responsibility from the organizations. These changes are more radical than those due to technology.

Technical Factors:

Technology continues to evolve at a rapid pace. What was once state-of -- the art, is quickly outdated. With these advancements, comes an increase in efficacy and efficiency for all organizations, in addition to a continued removal of geographical borders for transnational trade. For the fashion industry, technological improvements can be found in every step of the product lifecycle. From the developing of the design, to raw material delivery, to customer ordering, to delivery, technology has facilitated business growth in the path and likely will continue to do so. With technological advancements, there is also, as mentioned, the increasing concern for the environment.

Environmental Factors:

Environmental concerns have been a concern for organisations for generations. Regulations concerning the environment and organisations's effect on the environment continue to be developed. Consumers too want to see corporate social responsibility in the form of taking care of the environment and minimizing an organisations carbon foot print. Prime Minister Gordon Brown warned those attending the Major Economies Forum in London that the U.K. will face a major catastrophe that will involve floods, droughts, and killer heat waves, if an agreement can't be reached about climate change, with world leaders ("British PM," 2009).

Legal Factors: