MANAGING CASH FLOW

For the past 3 years since 2007, Polo RL's net income has been somewhat consistent at around $400,000-$420,000 annually; This is good being that the retail sales market has declined due to the recession.

CORPORATE GOVERNANCE

Polo Ralph Lauren Corporation's Corporate Governance Quotient (CGQ) as of Apr 1, 2010 is better than 3.7% of 500 companies and 44.8% of Consumer Durables & Apparel companies.

COOPERATIVE STRATEGY

Polo Ralph Lauren is moving at a more rapid paste then 40 years ago, when founder Ralph Lauren started the company. With different brands such as Polo Ralph Lauren, RRL, Rugby, the film design and market apparels and accessories, home furnishings and fragrances; Its collections are available at more than 10,000 locations worldwide, including many up-scale department stores, such as Macy's and Dillard's which make up more than a third of the company's wholesale revenue

INTERNATIONAL STRATEGY

Ralph Lauren intends to capitalize on developing economic strength in Southeast Asia. Ralph Lauren let the license expire in 2009 to have more control over its products and branding in Asia. Knowing Polo, this could result in large profits for Ralph Lauren, especially when North American sales are down due to the recession

ACQUISITION/ RESTRUCTURING STRATEGY

In the reorganization, Jeff Morgan has been named the president, Polo Ralph Lauren Media Group, where he will be responsible for global marketing, advertising, media business development and corporate communications.

The company did not say how these changes would affect future media campaigns. The company spent $75.4 million in 2000 and more than $44 million for the first six months in 2001.

CORPORATE LEVEL STRATEGY

Polo Ralph Lauren Corporation, together with its subsidiaries, engages in the design, marketing, and distribution of lifestyle products worldwide. It offers men’s, women’s, and children’s clothing; and accessories comprising footwear, eyewear, watches, jewelry, hats, and belts, as well as leather goods, including handbags and luggage. The company also provides products for homes, including bedding and bath products, furniture, fabric and wallpaper, paint, tabletop, and giftware; and fragrance products under Romance, Polo, Lauren, Safari, Ralph, and Black Label brands. In addition, it licenses its products, such as men’s sportswear, men’s tailored clothing, men’s underwear and sleepwear, eyewear, and fragrances.

COMPETITIVE RIVALRY

Ralph Lauren is the world's most successful fashion designer, selling clothing and luxury goods worth around $11bn a year. That's roughly twice as much as his closest rival, Giorgio Armani. Not bad for a working-class kid from the Bronx who started out designing ties. The secret of his success has been careful control of the Ralph Lauren and Polo trademarks, but above all an unrivalled understanding of the multiple strands that make up classic American style.

BUSINESS-LEVEL STRATEGY

The greatest risk that Polo RL posses right now is the law suit that they are currently involved in with Jones New York concerning a breach of licensing agreement. If Jones New York does potentially win this lawsuit then it could cost Polo RL $343 million in cash, which would potentially hurt the net income of next years earnings, but could be financed with the two revolving lines of credit that they have available. Also they have the seasonal department store challenges, with both competitors Tommy Hilfiger and Liz Clabourne introducing new styles and lines of clothes.

INTERNAL ORGANIZATION

OUTSOURCING

Take Polo Ralph Lauren, for instance. Some 95% of its merchandise flows through its Greensboro, N.C., distribution facility, so the company can't suffer downtime. Backup generation is being outsourced to Duke Power, which provides a diesel generator and monitoring services

EXTERNAL ENVIRONMENT

Polo Ralph Lauren’s strengths lie in its brand equity, infrastructureimprovements, its history, and it’s financial strength. while the weaknesses are in its dependence on department store sales and manufacturing.


Polo’s opportunities for growth include brand extension, specialty retail, and international expansion. And two threats facing Polo Ralph Lauren are the seasonal competition of departmentstores and the Jones New York lawsuit.

STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS

Ralph Lauren's vision is to represent timeless American style with a dash of British elegance and the comfort of natural fibers.

Ralph Lauren's mission is to redefine American style, provide quality products, create worlds, invite people to take part in our dreams.