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ARITZIA

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112 views18 pages

ARITZIA

Uploaded by

Isaac Michael
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Aritzia Operation Plan

Introduction

Canadian entrepreneur Brian Hill established the Aritzia label for women's apparel in

1984. The original Aritzia store was a stand-alone boutique located in Vancouver's Oakridge

Mall. Today, the company operates a global e-commerce platform in addition to its brick-

and-mortar storefronts in over a hundred locations across North America. The company went

public in October 2016, and its shares quickly rose to a price that was 13% higher than its

IPO price. Aritzia creates its own labels and brands, giving each its own identity and creative

direction. Aritzia rounds out its in-house labels with carefully chosen products from other

labels that share the company's commitment to originality, loyalty, excellence, sound

judgment, honesty, and teamwork.

Aritzia is also dedicated to funding groups that empower women and girls to achieve

their professional and personal goals. Through its Community Partner Program, the company

has forged lasting relationships with a number of community partners who share this goal

(Organimi Inc. 2023).

1. Operational plan

And since it operates in a highly competitive industry, it requires a well-structured

operational plan that takes into consideration the facilities and equipment necessary for the

venture, production processes, management information systems that includes quality control,

tracking, IT requirements, and e-business strategy. This paper will discuss each of these

aspects in detail and outline Aritzia's organizational plan (Aritzia Inc 2022).

Facilities and Equipment


Aritzia operates in the retail industry, and as such, it requires physical stores in

various locations. The stores are the face of the brand and play a significant role in attracting

and retaining customers. Aritzia's stores are designed to be inviting, stylish, and comfortable

to create a unique shopping experience for customers. They are equipped with modern

fixtures and fittings that showcase the brand's aesthetic appeal. In addition to physical stores,

Aritzia has an online store that allows customers to shop from anywhere. The online store is

equipped with modern software and hardware that allows for seamless transactions and a

user-friendly experience. Its a critical component of the company's e-commerce strategy and

has become increasingly important in recent years. Aritzia has invested in state-of-the-art

servers and data centres to ensure the security and reliability of its online store. Therefore, to

support the physical stores and online store, the company has put in place a robust

management information system (MIS) (Indigo 9 digital 2022). The MIS system integrates

various business functions, such as inventory management, sales tracking, and customer data

management, to provide real-time information on the company's performance. The system is

designed to support decision-making at all levels of the organization and ensure the efficient

operation of the business.

Production Processes

Aritzia operates on a vertical integration model, which means it controls every aspect

of its production processes, from design to delivery. The company designs its products in-

house, sources materials from reputable suppliers, and manufactures its products in its

factories. This approach allows Aritzia to maintain quality control and ensure that its products

meet its standards. The production process starts with the design team, which creates product

designs based on market trends and customer preferences. The designs are then passed on to

the sourcing team, which sources materials from suppliers. The production team then
manufactures the products, and the finished products are sent to Aritzia's distribution centres

for storage and delivery.

Management Information Systems

Aritzia relies on management information systems (MIS) to manage its operations.

The MIS provides real-time information on sales, inventory levels, and customer behaviour,

which enables the company to make informed decisions. Aritzia's MIS includes software for

sales and inventory management, customer relationship management, and financial

management. The company uses cloud-based systems that allow for remote access to data,

which enables employees to work from anywhere. The MIS also includes analytics tools that

provide insights into customer behaviour, which enables Aritzia to tailor its products and

services to customer needs. These includes; inventory management, sales tracking, and

customer data management, to provide real-time information on the company's performance.

i) Quality Control and Tracking

Quality control is an essential aspect of Aritzia's operations, and the company has put

in place strict quality control measures to ensure that its products meet the required standards.

The company sources its products from various suppliers, and it has a team of quality control

experts who oversee the production process to ensure that the products meet the company's

specifications. The company also conducts regular audits to ensure that suppliers comply

with the company's quality control standards. Tracking is another critical aspect of Aritzia's

operations, and the company uses advanced tracking systems to monitor the movement of its

products from suppliers to stores. The tracking systems enable the company to track

inventory levels, product demand, and sales trends. This information is used to optimize the

company's inventory management processes and ensure that the right products are available

at the right time and in the right quantities.


IT Requirements

Aritzia's IT requirements are vast, given its reliance on technology to manage its

operations. The company has invested heavily in IT infrastructure, including servers, data

centres, software and networking components that enables the company to manage its

operations, process transactions and collect and analyse data. Aritzia uses cloud-based

systems to manage its operations, which allows for remote access to data. The company also

uses a range of software applications for sales and inventory management, financial

management, and customer relationship management. Aritzia's IT systems are scalable,

which enables the company to accommodate growth and expansion.

Moreover, hardware requirements are a critical component of Aritzia's IT

infrastructure. The company's hardware requirements include servers, desktop computers,

laptops, tablets, and other devices that are used by its employees to manage operations.

Aritzia's servers store and process data for its e-commerce and physical stores, while its

desktops and laptops are used for tasks such as inventory management, accounting, and other

administrative functions. The company also provides tablets to its store employees to enable

them to access product information and process transactions on the shop floor.

Software requirements are another crucial aspect of Aritzia's IT infrastructure. The

company uses a variety of software solutions to manage its operations, including enterprise

resource planning (ERP) software, point-of-sale (POS) software, and inventory management

software. ERP software is used to manage the company's financial and accounting functions,

while POS software is used to process transactions in its physical stores. Inventory

management software is used to track and manage the company's inventory across its supply

chain and ensure that the right products are in stock when customers need them.
Networking components are also an essential component of Aritzia's IT infrastructure.

The company's networking requirements include local area networks (LANs), wide area

networks (WANs), and internet connectivity. These networking components enable the

company to connect its physical stores to its headquarters and other locations, process

transactions, and connect to the internet for online operations.

E-business Strategy

Aritzia's e-business strategy is a critical aspect of the company's overall business

strategy. The company recognizes the importance of offering customers a seamless and

convenient shopping experience, whether they shop in physical stores or online. Therefore,

the company’s e-business strategy includes a strong focus on its online store, which has been

designed to be user-friendly and visually appealing. The company invests in state-of-the-art

servers and data centres to ensure the security and reliability of its online store. In addition,

Aritzia has implemented a range of features to enhance the online shopping experience, such

as detailed product descriptions, high-quality product images, and easy-to-use search and

navigation functions. The company also uses data analytics to better understand customer

behaviour and preferences and to optimize its online store's performance

(investors.Aritzia.com 2022).

Website Development and Software Requirements

Website development is an ongoing process that involves designing and maintaining a

user-friendly and secure website. Aritzia's online store is designed to provide customers with

a seamless shopping experience that is easy to navigate and makes finding and purchasing

products a breeze. The website is optimized for various devices, including desktops, tablets,

and smartphones, to ensure that customers can access the store from anywhere and on any

device. The company invests in robust security measures, including encryption technologies,
firewalls, and intrusion detection systems, to ensure that its online store is secure and

protected from cyber-attacks.

Moreover, Aritzia's website development team is responsible for designing and

maintaining the company's online store. The team comprises web developers, designers, and

content creators who work together to create a seamless user experience. The website is

designed to be mobile-responsive, which means that customers can shop from their mobile

devices. The website development team uses a range of software tools, including content

management systems, e-commerce platforms, and analytics tools. Therefore, to ensure the

security and reliability of its online store, Aritzia invests in advanced software requirements.

The company uses modern software solutions to support various aspects of its e-commerce

operations, such as online payments, order processing, and inventory management. For

instance, Aritzia's website integrates with payment gateways that allow customers to make

secure online payments using various payment options, including credit cards, PayPal, and

other popular payment methods.

Online Security Issues

Aritzia takes online security seriously, given the sensitive nature of customer data.

The company has put in place measures to protect its online store and customer data from

cyber threats. Aritzia's online store uses secure sockets layer (SSL) encryption, which ensures

that all data transmitted between the website and the customer's device is encrypted. The

company also uses firewalls and intrusion detection systems to prevent unauthorized access

to its servers and data centres. Aritzia's IT team conducts regular security audits and

penetration testing to identify vulnerabilities and address them promptly.

In conclusion, Aritzia's organizational plan is well-structured and takes into

consideration the facilities and equipment necessary for the venture, production processes,
management information systems, quality control, tracking, IT requirements, and e-business

strategy. The company's focus on quality control, customer experience, and online security

has enabled it to establish itself as a leading fashion brand in a highly competitive industry.

As Aritzia continues to grow and expand, it will need to adapt its organizational plan to

accommodate new challenges and opportunities (Aritzia 2023).

2. Human resource plan

Aritzia's human resource plan is critical to the success of the company's operations

and growth strategy. The plan focuses on personnel details needed for market entry, training,

and recruitment and retention strategies.

Personnel details needed for market entry;

To support its market entry strategy, Aritzia requires a diverse and highly skilled

workforce with expertise in areas such as sales, marketing, design, logistics, and finance.

Additionally, the company's organizational chart reflects its commitment to a flat and

collaborative organizational structure, with a focus on cross-functional teams and agile

decision-making. The chart includes roles such as Chief Executive Officer, Chief Financial

Officer, Chief Operating Officer, Vice President of Design, Vice President of Logistics, Vice

President of Marketing, and Vice President of Sales (organimi.com 2023).

Job descriptions with critical skills:

Aritzia's job descriptions are designed to attract and retain the best talent in the

industry. The company places a strong emphasis on critical skills such as communication,

collaboration, adaptability, and problem-solving. Job descriptions for key roles such as Store

Managers, Sales Associates, Designers, and Logistics Coordinators include critical skills such

as customer service, product knowledge, inventory management, project management, and

strategic thinking.
Training needed and plans to meet organizational skills gaps:

To ensure that its workforce is equipped with the skills and knowledge needed to meet

its growth objectives, Aritzia invests in training and development programs. The company's

training programs include on-the-job training, mentorship, leadership development, and skills

training. The programs are designed to meet organizational skills gaps and to support

employee growth and career development.

Short- and long-term recruitment and retention plans:

Aritzia has a comprehensive recruitment and retention strategy that focuses on

attracting and retaining top talent in the industry. In the short term, the company focuses on

recruiting from top universities and colleges, as well as from industry associations and job

fairs. In the long term, the company invests in retention strategies such as competitive

compensation packages, performance-based bonuses, and career development opportunities.

In conclusion, Aritzia's human resource plan is critical to the success of the company's

growth strategy. The plan focuses on personnel details needed for market entry, job

descriptions with critical skills, training to meet organizational skills gaps, and short- and

long-term recruitment and retention plans. The company's commitment to investing in its

workforce ensures that it is well-positioned to meet the challenges and opportunities of the

retail industry.

3. Communication plan

Aritzia's communication plan is a critical component of its overall business strategy.

The company recognizes that effective communication is essential for building strong

relationships with customers, suppliers, and other stakeholders, as well as for maintaining a

cohesive and productive workforce. As such, Aritzia has developed processes for both
internal and external interactions, which are designed to ensure that communication is clear,

efficient, and effective.

Internally, Aritzia's communication processes are designed to facilitate interactions

between employees and teams. The company uses a range of communication channels,

including regular team meetings, one-on-one meetings with managers, and communication

via email, instant messaging, and other digital platforms. Aritzia also uses an intranet to

provide employees with access to important company information, policies, and procedures.

In addition to these formal channels, Aritzia also places a strong emphasis on informal

communication. The company encourages open and honest communication between

employees, and fosters a culture of collaboration and teamwork. Aritzia also holds regular

social events and team-building activities to help employees build strong relationships with

one another.

However, when it comes to interactions with organizational support services and

partners, Aritzia has developed processes to ensure that communication is clear and efficient.

The company uses digital platforms, such as email and instant messaging, to communicate

with suppliers and agents, and also holds regular meetings and conference calls to discuss

issues and resolve any challenges. Aritzia places a strong emphasis on building strong

relationships with its partners and suppliers, and works collaboratively with them to achieve

shared business objectives. In terms of interactions with customers, Aritzia has developed a

comprehensive communication plan that includes both online and offline channels. The

company uses social media platforms, email marketing, and its website to communicate with

customers about new products, promotions, and other important information. Aritzia also

provides customer service via phone and email, and has dedicated customer service teams in

each of its stores. The company has developed a range of marketing materials, including
signage, product displays, and window displays, that are designed to communicate its brand

messaging and highlight its products.

Overall, Aritzia's communication plan is a key component of its business strategy, and

is designed to ensure that communication is clear, efficient, and effective both within the

company and with its partners, suppliers, and customers. By using a range of digital and

traditional channels, Aritzia is able to build strong relationships with its stakeholders and

maintain its position as a leading fashion retailer (issuu.com 2019).

4. Social responsibility strategy

Aritzia's social responsibility strategy is an integral part of the company's overall

mission and vision. The company recognizes the importance of conducting its business

operations in a sustainable and responsible manner, and it is committed to making a positive

impact on the environment and the community. The company recognizes that it has a

responsibility to protect the environment, support fair labour practices, and give back to the

community. In this section, we will outline Aritzia's environmental policies and initiatives,

community contribution programs, relevant certifications, and plans to obtain additional

certifications (ARITZIA 2023).

Environmental Policies and Initiatives:

Aritzia's environmental policies are focused on reducing the company's carbon

footprint and promoting sustainable practices in its operations. The company has

implemented several initiatives to achieve these goals. For example, Aritzia uses energy-

efficient practices in its stores and offices, including the use of LED lighting and the

installation of motion sensors to turn off lights when no one is present. The company also

uses sustainable materials in its products, such as organic cotton and recycled polyester.

Aritzia has also implemented a recycling program in its stores and offices, which includes the
recycling of paper, plastic, and other materials. The company has also set a goal to reduce its

waste by implementing a zero-waste program. Aritzia is committed to continuously

improving its sustainability practices and reducing its impact on the environment.

Moreover, the company has implemented a number of environmental policies and

initiatives to reduce its carbon footprint and minimize its impact on the environment. One of

the main initiatives is to reduce energy consumption and greenhouse gas emissions. The

company uses energy-efficient lighting in its stores and offices, and it has implemented

measures to reduce energy consumption in its distribution centres. Another key initiative is to

reduce waste and increase recycling. Additionally, it has implemented a recycling program in

its stores and offices, and it composts waste materials such as food scraps and paper products.

The company also uses eco-friendly packaging materials for its products and encourages

customers to recycle or reuse these materials.

Aritzia is committed to sourcing materials from suppliers that use sustainable

practices and avoiding materials that are harmful to the environment. The company uses

organic cotton and other sustainable materials in its products, and it works with suppliers to

ensure that materials are sourced in a responsible and ethical manner. In addition, Aritzia has

implemented initiatives to reduce water usage and improve water quality. The company has

implemented water-efficient technologies in its stores and distribution centres, and it has

implemented measures to reduce water consumption in its manufacturing processes. Aritzia

also works with suppliers to ensure that water is used in a responsible and sustainable manner

(ARITZIA 2020).

Community Contribution Initiatives:

Aritzia is committed to giving back to the communities in which it operates. The company

has several community contribution initiatives that focus on supporting organizations that
promote women's empowerment and leadership. One of these initiatives is the Aritzia

Community program, which provides financial support to organizations that are working to

empower women and girls. The program also provides opportunities for Aritzia employees to

volunteer and give back to their communities. Aritzia also supports several organizations that

focus on social and environmental issues. For example, the company partners with One Tree

Planted, a non-profit organization that focuses on reforestation and forest conservation.

Through this partnership, Aritzia donates a portion of its sales to One Tree Planted, which

helps fund reforestation projects around the world.

Certifications:

Aritzia holds several certifications that demonstrate its commitment to social

responsibility. One of the most important certifications is the Fair-Trade certification, which

ensures that the company's products are produced under fair labour conditions. Aritzia is

committed to maintaining this certification and ensuring that its suppliers adhere to fair labor

practices. Aritzia is also certified by the Forest Stewardship Council (FSC), which promotes

responsible forest management. The FSC certification ensures that the wood and paper

products used by Aritzia are sourced from responsibly managed forests. Moreover, the

company was certified as a B Corp in 2019. This certification is awarded to companies that

meet rigorous standards for social and environmental performance, accountability, and

transparency. B Corp certification requires a comprehensive assessment of a company's

impact on workers, customers, communities, and the environment, as well as its governance

and ethics.

Additionally, Aritzia is a member of the Sustainable Apparel Coalitions and uses the

Higg Index to measure and improve its sustainability performance. A tool that enables

companies to measure and score their environmental and social sustainability performance
across their entire supply chain. The Carbon Trust Standard for carbon reduction certificate

was also awarded. This certification is awarded to companies that have demonstrated a

significant reduction in carbon emissions over a three-year period. Aritzia uses, Forest

Stewardship Council FSC-certified paper products in its stores and offices. FSC certification

ensures that paper products are sourced from responsibly managed forests that meet strict

environmental, social, and economic standards.

Furthermore, the Responsible Down Standard (RDS) Certification is also issued to the

company, for its products. RDS certification ensures that down and feathers are sourced from

farms that meet strict animal welfare standards. These certifications demonstrate Aritzia's

commitment to sustainability, ethical business practices, and social responsibility. They also

provide customers with assurance that the company is taking proactive steps to reduce its

impact on the environment, protect workers' rights, and promote ethical sourcing practices.

By obtaining these certifications, Aritzia is demonstrating leadership in the fashion industry

and setting an example for other companies to follow (ARITZIA.com 2023).

Plans for Additional Certifications:

Aritzia is committed to continuously improving its sustainability practices and

obtaining additional certifications. The company is currently exploring several certifications,

including the Leadership in Energy and Environmental Design (LEED) certification and the

B Corp certification. The LEED certification is a globally recognized certification for

sustainable building design and construction. Aritzia plans to obtain this certification for its

new store locations and office buildings. The B Corp certification is a certification for

businesses that meet rigorous standards of social and environmental performance,

accountability, and transparency. Aritzia is currently in the process of applying for this
certification, which will further demonstrate the company's commitment to social

responsibility.

Aritzia's social responsibility strategy is focused on environmental policies,

community contribution initiatives, relevant certifications, and plans for additional

certifications. The company is committed to reducing its carbon footprint, supporting the

community, and ensuring fair labour practices in its supply chain. Aritzia plans to

continuously improve its sustainability practices and make a positive impact on the

environment and the community.

Market Strategy Skills

The history

Aritzia was founded in 1984 by Brian Hill, who had a passion for fashion and a desire

to create a brand that offered high-quality, contemporary clothing for women. The company

started as a single boutique in Vancouver, Canada, and quickly gained popularity among

young women looking for fashionable and trendy clothing. The company has grown

significantly since its inception and now operates over 100 stores across North America,

including in major cities such as New York, Los Angeles, and Toronto.

Over the years, Aritzia expanded its product offerings and opened more stores across

Canada. In 2005, the company underwent a major transformation, with a focus on creating a

more cohesive brand image and offering a wider range of products. The company's new

strategy paid off, and Aritzia quickly became one of the fastest-growing retailers in Canada.

In 2012, Aritzia opened its first US store in New York City, marking the company's entry

into the American market. The brand quickly gained a following in the US, and Aritzia now

operates over 30 stores across the country.


Today, Aritzia is known for its contemporary fashion offerings, including clothing,

accessories, and beauty products. The company's mission is to empower women to feel

confident and comfortable in their own skin, through clothing that is both stylish and

functional. With a focus on quality, sustainability, and social responsibility, Aritzia has

become a leading retailer in the fashion industry, with a strong presence in Canada, the US,

and beyond.

Location

Aritzia is headquartered in Vancouver, British Columbia, Canada. The company has

over 100 locations in Canada and the United States, including stores in major cities such as

Toronto, New York, Los Angeles, and San Francisco. Additionally, Aritzia has an online

store that serves customers worldwide.

The mission

The mission of Aritzia is to inspire individuality, confidence and creativity by

providing exceptional customer experience through its products and services. The company

aims to create a culture of inclusivity, diversity, and sustainability while staying true to its

commitment to offering high-quality, on-trend clothing and accessories that reflect the

brand's unique aesthetic. Aritzia strives to be a company that empowers its employees to

innovate, create and make a difference, while also giving back to the community through

various social responsibility initiatives. The company's mission is to continue to grow as a

global brand, while maintaining its values and commitment to its customers, employees, and

stakeholders. Additionally, to empower women through fashion and to provide high-quality

clothing that is both stylish and comfortable.

Goals and values


Aritzia's primary goal is to become a global leader in the fashion retail industry. The

company aims to achieve this by consistently delivering high-quality products, exceptional

customer service, and innovative designs that cater to a wide range of tastes and preferences.

Aritzia's value proposition is centred around its commitment to providing its customers with a

unique shopping experience that combines style, comfort, and convenience. The company's

values are anchored on four key pillars: creativity, quality, innovation, and sustainability.

Aritzia's creative team is dedicated to designing and producing fashion-forward apparel and

accessories that reflect the latest trends and styles. The company places a premium on quality,

ensuring that all its products are made from the finest materials and crafted to meet the

highest standards of craftsmanship.

Innovation is at the heart of Aritzia's operations, and the company invests heavily in

research and development to identify emerging trends and develop cutting-edge products that

set it apart from its competitors. Aritzia's commitment to sustainability is reflected in its

policies and practices, such as the use of eco-friendly materials, sustainable sourcing, and

reducing its carbon footprint. These values guide Aritzia's decision-making process, ensuring

that it operates in a socially responsible and ethical manner. Aritzia's values are centred

around inclusivity, sustainability, and social responsibility. Aritzia's key products include a

wide range of clothing items, such as dresses, jackets, pants, and tops, as well as accessories

such as bags and jewellery. The company is known for its focus on design and quality, and its

clothing items often feature unique details and textures. Aritzia also places a strong emphasis

on customer service, and its stores are designed to provide a welcoming and comfortable

shopping experience.

In addition to its brick-and-mortar stores, Aritzia also operates an online store that

allows customers to shop from anywhere. The company's experience in international markets

includes stores in the United States and Canada, as well as a growing presence in Asia,
including stores in Hong Kong and Japan. Aritzia has set ambitious goals for itself, including

a commitment to sustainability and social responsibility. The company has implemented

various initiatives to reduce its environmental impact, such as using eco-friendly materials in

its products and adopting sustainable packaging practices. Aritzia is also committed to ethical

sourcing and has received certifications such as the Responsible Down Standard and the

Global Organic Textile Standard.

In terms of its selected market, Aritzia has identified a need for high-quality fashion

items that are both stylish and comfortable. Moreover, the selected market which is the UK,

Aritzia is relatively new, having only opened its first location in London in 2019. However,

the company has demonstrated a strong commitment to the UK market, and has plans to open

additional stores in the region. Aritzia has already received a positive response from UK

customers, who appreciate the brand's high-quality products and unique sense of style. The

company aims to fill this gap by providing clothing that is designed with the needs of women

in mind, and by offering a shopping experience that is both enjoyable and convenient. Aritzia

also recognizes the importance of cultural sensitivity and aims to tailor its offerings to the

preferences and values of customers in each market it operates in. Overall, Aritzia is a

successful and growing fashion company with a strong commitment to sustainability, social

responsibility, and customer service. Its focus on design and quality has helped it stand out in

a crowded market, and its dedication to making a positive impact sets it apart from other

retailers. With a solid foundation and a clear vision for the future, Aritzia is well-positioned

to continue its growth and success in the years to come.

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