business management report | Schemes and Mind Maps Introduction to Business Management

#1 Hello. This is Harin Yoon who will introduce and explain about an international

corporation, Desserto. Title of this presentation is “the meaning of switching over to

a new form of leather from Desserto’s cactus leather”. And the subtitle is “more

about sustainable consuming”. I want you to focus on the words of new form of

leather and sustainable consuming!

#2 The presentation’s contents are like in this page. There are three big parts here,

introduction, body, and conclusion. First, in introduction I will explain the background

of this research with research questions, reason of the research, background and

profile of Desserto. Second, in Body part, I will explain the STP, marketing mix with

4Ps, and SWOT analysis of Desserto. In addition, the main part of this phase,

Desserto’s production process in priority. Finally, in conclusion, I will suggest some

solutions or suggestions based on the research of BODY part and will finish with

answering to the research questions at the first stage of this research.

#3 Now, let me start from the introduction

#4 Before the beginning of the research, I made some research questions to make

sure the purpose and the direction of this research. Research question number one,

“what features of Desserto can lead people to sustainable consumption?” This

question will be answered when we get Desserto’s sustainable characteristics.

Number two, “What fashion industry would be when people consume Desserto

instead of leather from animal?” This question represents that the future relationship

and impacts on fashion industry of Desserto. Number three, “Where the fashion

industry should ahead for?” Finally, I will find the way the fashion industry can keep

going also in the future based on the results of this research.

#5 There are some reasons that I chose this research subject “Desserto and its

sustainability”. First, I strongly feel responsible as a student studying business and

fashion, contributing consumers to buy and meet products from sustainable firms by

their rights to know. Second, on this messy era, I want to suggest a direction where

the fashion and textile industries should ahead for. Third, I want to get a great

experience personally, through deep understanding an international corporation

Desserto, whose mission and aim is what I pursue in my life.

#6 Before we go deep inside of Desserto, it is necessary to seek the background of

nowadays in fashion industry. This figure shows the current situation and problems of

fashion industry well by numbers. The economic size of fashion industry is 2.5 trillion

dollars and 1 in 6 people in the world are working in fashion and fashion related

industry. However, 10% of global carbon emission and water use in a year is from

fashion industry which is the second highest ranked pollution degree in whole

industries.

#7 The problem is this troubled fashion industry is still growing. Figure 2 shows

partially in Asia and Australasia, the fashion industry is indeed a core industry

accounting about 1.5 trillion dollars in 2020. As also 7.2 billion people are in fashion

industry.

#8 That being so, a conclusion comes to which is, the fashion industry deserves to

switch-over to a new way of environmental coexistence with responsibility to solve

chronic problems in the whole industry. Thankfully, concerns in sustainable life of

consumers are increasing and also in fashion industries. As the figure 3,

governments and global companies have started investment in sustainable

industries by legislations or fundamental shaping of industry. The biggest players in

sustainable investors are Europe and the United States with following Japan.

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#1 Hello. This is Harin Yoon who will introduce and explain about an international corporation, Desserto. Title of this presentation is “the meaning of switching over to a new form of leather from Desserto’s cactus leather”. And the subtitle is “more about sustainable consuming”. I want you to focus on the words of new form of leather and sustainable consuming! #2 The presentation’s contents are like in this page. There are three big parts here, introduction, body, and conclusion. First, in introduction I will explain the background of this research with research questions, reason of the research, background and profile of Desserto. Second, in Body part, I will explain the STP, marketing mix with 4Ps, and SWOT analysis of Desserto. In addition, the main part of this phase, Desserto’s production process in priority. Finally, in conclusion, I will suggest some solutions or suggestions based on the research of BODY part and will finish with answering to the research questions at the first stage of this research. #3 Now, let me start from the introduction #4 Before the beginning of the research, I made some research questions to make sure the purpose and the direction of this research. Research question number one, “what features of Desserto can lead people to sustainable consumption?” This question will be answered when we get Desserto’s sustainable characteristics. Number two, “What fashion industry would be when people consume Desserto instead of leather from animal?” This question represents that the future relationship and impacts on fashion industry of Desserto. Number three, “Where the fashion industry should ahead for?” Finally, I will find the way the fashion industry can keep going also in the future based on the results of this research. #5 There are some reasons that I chose this research subject “Desserto and its sustainability”. First, I strongly feel responsible as a student studying business and fashion, contributing consumers to buy and meet products from sustainable firms by their rights to know. Second, on this messy era, I want to suggest a direction where the fashion and textile industries should ahead for. Third, I want to get a great experience personally, through deep understanding an international corporation Desserto, whose mission and aim is what I pursue in my life. #6 Before we go deep inside of Desserto, it is necessary to seek the background of nowadays in fashion industry. This figure shows the current situation and problems of fashion industry well by numbers. The economic size of fashion industry is 2.5 trillion dollars and 1 in 6 people in the world are working in fashion and fashion related industry. However, 10% of global carbon emission and water use in a year is from fashion industry which is the second highest ranked pollution degree in whole industries. #7 The problem is this troubled fashion industry is still growing. Figure 2 shows partially in Asia and Australasia, the fashion industry is indeed a core industry accounting about 1.5 trillion dollars in 2020. As also 7.2 billion people are in fashion industry. #8 That being so, a conclusion comes to which is, the fashion industry deserves to switch-over to a new way of environmental coexistence with responsibility to solve chronic problems in the whole industry. Thankfully, concerns in sustainable life of consumers are increasing and also in fashion industries. As the figure 3, governments and global companies have started investment in sustainable industries by legislations or fundamental shaping of industry. The biggest players in sustainable investors are Europe and the United States with following Japan.

#9 The backgrounds of fashion industry in nowadays shows and has two significant conclusions. First, it is certain that consumers are recognizing the importance of sustainable consumption, however, there are insufficient practices yet in fashion industry. It is only in the starting phase now. Second, we saw the huge size of fashion industry and the impact on people’s lives. So all fashion companies fully have responsibility and enough power to lead people in better life with satisfying their needs and value. #10 In that sense, I chose Desserto for researching. Desserto was born in 2019 by two CEOs, Adrian and Marte in Mexico. Its parent company is Adriano Di Marti. As Desserto’s mission aims offering sustainable and reducing environmental impact, I will explain more specifically later, Adrian and Marte quit working in furniture industry and started their business not to make any pollutions. After two years of developing its product, it came out to the world. The first showcase was in Milan in

#11 The main product is its name Desserto itself. Two big categories exists. One is Desserto, a textile made from cactus, nopal. Desserto is vegan leather and Deserttex, a version of high-end product, which offers exclusive textile and material from nopal premium brands. #12 Here is Desserto’s mission and vision showing its representative identity well. Because they recognized the furniture industries using animal leather lays a lot of serious pollutions in the environment and started to make Desserto, its aim is so obvious. “Offer sustainable products with excellent quality through the organic process that does not give any harm to the environment.” #13 move to the next, I will go deep inside of Desserto with its main marketing strategies. #14 First of the Body phase, the STP strategy of Desserto. Based on segmentation, Desserto targeted its market and consumers. There are four large separations for targeting demographic, geographic, psychographic and behavioral. First, demographically, it targets fashion brands whose major selling items are for 20s and 30s targeting middle to upper class. Second, from a point of geographical view, Desserto is borderless international corporation which trades and exports regardless of nations. Therefore, it is targeting international market. Third, psychographic targeting towards people who care about sustainable and ethical consumption. Especially vegans, for example, avoiding animal products and people who value environmental impacts can be ideal target consumers. Finally, from the point of behavioral segmentation, it targets first-time users because Desserto is unveiled just in 2019. According to benefits sought, people who want to be shown as thoughtful to environmental problems are also targets. #15 Next, positioning of Desserto. Two factors are considered in positioning map. The target class and degree of sustainability. The target class is according to social class which is a brand is targeting with its product and marketing. And degree of sustainability here is based on impacts on environment when the products are produced such as carbon footprints, CO2 emission, or disposability of the products. In comparison with the luxury brands having their own leather production system ranked with low sustainability and high price, Desserto located opposite side with high sustainability and medium target class. H&M as a SPA brand, located near by mass market and in the middle of sustainability. In addition, Desserto takes more for more strategy. It costs more compare with general leathers which can get in common markets. #16 With STP strategy, here is Desserto’s marketing mix with 4Ps. First, product. Desserto, as a main product is a totally new product and brand. And It has more than

organic. #20 After the production, it can be partially biodegraded and can be applied in wide range of industries. However, the production process shows some improvement points. Because Desserto is in the introduction stage of product life cycle with insufficient experiences, the production system is felt to be unsatisfied. So, I suggest considering system automation or efficient way to shorten the lead time when the size of business grows. #21 Next, in opposite, the production process of existing animal leather. I will refer cow as the representative animal here, because cow is the most used animals accounting 80 percent of whole animal leather. There are two huge main subjects for ready to produce animal leather, environmental destruction and unethical process to get skin. I will explain each subjects specifically with some figures. #22 This figure shows corn usage in the US by segment in 2019. You may wonder how this corn usage is related with production of animal leather. Then, think about the materials to make animal leather first. Animals are needed. And clearing forest for breeding and feeding them is necessary. #23 To raise animals, it needs huge amount of fossil fuel and water. Figure here shows the environmental impacts from live stocks. Lots of water has been using for keeping stocks in many countries so that drives a serious water shortage and decrease of groundwater. Furthermore, Amazon, as known as the lungs of the earth, got also serious damages. #24 Next during the production what I want to focus on is chrome tanning that hurts workers. Chrome tanning is the most important step for finishing leather by removing unnecessary protein fibers or collagen, and the possibility of biodegradation. Chemical substances such as chromium, cobalt, cadmium, and formaldehyde in solutions cause severe situation to the environment and workers in factories. The problem is though these chemical substances are known as cancer- causing matters, treatment of these in the workplaces and after usage is not handled carefully. #25 The problems exist also after using the leather. First in the common way of disposal leather is incineration. Incineration lays lots of cancer-causing substance like Dioxin. It is accumulated in body which impacts on hormone action spoiling every metabolic system. #26 Therefore, for these reasons, most of disposals after use of leather go to landfill. Landfill, however, does not mean it is safer or better than incineration to human and environment. Not only it takes long time for decomposition, but also the amount is enormous. #27 In conclusion, I will finish this presentation with suggestions on Desserto and conclusion of this research. #28 Because there are some difficulties to make sure its position in the market such as delivering or geographic limit which I mentioned in SWOT analysis, I suggest some solutions here. First, international branches being run by headquarter in Mexico. To expand the business over the world through branches should be with its growing. Second, aggressive advertisement with its value. It is clear that Desserto has higher price than general leather market. However, the customers do not know the reasons and the value which Desserto want to deliver without explanation. It can collaborate or find powerful fashion brand such as H&M for introducing the brand by expansion

international market and communication with a lot of consumers. #29 At the end, I can finally answer the research questions which are in the start of this research paper. First question, First, the product itself, with fully organic and eco-friendly production process. Second, the value and mission. Second question, Many existing problems in fashion industry can be solved and can be truly sustainable. First, environmental problems can be solved the fashion industry is facing. Second, environment of employees can be improved without using any harmful chemicals. Finally, the fashion industry can be sustainable. Last question, Noticing values that consumers want to get from the products and keeping the environment which enables production and sale are essential for the industry’s sustain. This is the time that all brands or companies in the fashion industry should make a complete change heading for “SUSTAINABLE”. #32 This is the end of my research and presentation. Hoping the world will change better with increasing sustainable consuming and corporations like Desserto, thank you for your listening this long presentation.

business management report, Schemes and Mind Maps of Introduction to Business Management

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