Case Study On French Connection

FCUK FRENCH CONNECTION

French connection (also branded as FCUK) is a UK- based global retailer and wholesaler of fashion clothing, accessories and home ware. It was founded in the early 1970s by Stephen a mark, who remains the chief executive; it is based in London and its parent French Connection PLC is listed on the London stock exchange.

French Connection distributes its clothing and accessories through its own stores in the UK, US and Canada and through franchise and wholesale arrangements globally. The company became notorious for the use of the “FCUK” initialise in its advertising campaigns in the early 2000s.

Marks introduced the French connection label in 1972 and four years later showed its first menswear collection.

Source: 'FCUK

The effective interest rate on floating rate financial assets during the year was 0.7% (2014: 0.5%).

There was no fixed rate or floating rate financial liabilities at the end of the current or prior year. The Group does not use interest rate financial instruments. The Group regularly monitors and reacts accordingly to any exposure to fluctuations in interest rates and the impact on its monetary assets and liabilities. Source: FCUK Annual Report

Effects of monetary and fiscal policy towards FCUK

Fiscal and monetary policies have great effect on French Connection Group Plc. and their activities. Fiscal policies are determined by the government and it is the amount of tax organization has to pay to government. If government increases the tax level, firms have less money to invest and recruit. Organization may charge more money to customers for their products and services. If government imposes low taxes, firms want to invest for many sectors which create job for people. Central bank controlled the monetary policy. Monetary policy has effect not only on the business organization but also the entire economy. It is the ability to obtain credit. Expansionary monetary policy ensures low interest rates and availability of credit. Contractionary policy lessens the money supply and makes it tough to borrow money for organization. The activities of organizations largely depend on those policies. Expansionary policies

By understanding the business environment the organization can identify its strength, weaknesses, opportunities and threats. Organizations are categorized into two types and those two are private sector and public sector. Organizations in the private sector are sole trader ship, partnership joint ventures, clubs and societies, limited companies, co-operatives and the public sector consist of government companies, government departments and government corporations. Organizations in private sector are owned by the private individuals for profit motive whereas organizations in public sectors are mostly owned by the government. Stakeholders are people with common interest in business and the stakeholders of FCUK which has sorted into two groups internal and external stakeholders and stakeholders in both groups has their responsibilities towards FCUK. FCUK operates with mission and a vision statement, aims, objectives and goals that they have targeted to be achieved and they do also have a good market share in clothing industry in