A main component of this is a change in behavior of the consumer resulting from changes in styles and fashions. With the social factor, a business can resolve the socio-economic environment of its market via elements like customer demographics, cultural limitations, lifestyle attitude, and education .These factors help Alphabet Games examine consumer needs and what pushes them to make buys. Among the things that should be studied are country demographics, population growth rates, age distribution, positions toward work, way of life changes, training and ecological and health
Deregulation has been controversial since the 1970s as result of new trends in economic thinking regarding the inefficiencies of government regulation, as well as the risk of industries controlling regulatory agencies to its own benefit. Proponents of laissez-faire based economics insist that the cost of meeting all the government-imposed regulations increase of the cost of doing business, and that increased cost will inevitably lead to laid-off workers and the rise in prices for consumers. While having an economy that leans toward laissez-faire based economics could potentially be more beneficial for business owners and corporate executives, the fairest policy for the governance of the economy is through regulated capitalism due to its stride toward a safe and sufficient workplace, caring about employees, and reassurance of a clean, healthy environment. One reason that regulated capitalism is the fairest policy for the governance of the economy is due to its stride toward a safe and sufficient workplace. Many see government to have their best interests at heart.
Today’s stakeholders want more accountability. The debate over Corporate Social Responsibility (CSR) has shifted from whether companies should engage in CSR to how to make substantial commitment to CSR? The added pressure from stake holders has increased as accountability plays a key role for the demand for favourite brands grow. Consumers are more demanding than ever. Safeguarding the brand image and corporate reputation has become important as markets all over the world have become very competitive and image has become more vulnerable.
While micro environment factors, on the other hand, such as competition norms impact the competitive advantage of the firm. Nordstrom can use the country’s economic factor such as growth rate, inflation & industry’s economic indicators such as apparel stores industry growth rate, consumer spending etc. to monitor the growth of not only retail sector but also that of the organization. Economic factors that Nordstrom should consider while conducting PESTLE analysis
These insight can be gathered from consumer surveys, both qualitative and quantitative in nature, which can help the company to gather data on the strength and weakness of the brand and product attributes that are associated with frequency of purchase and usage of the product. Moreover these consumer insights help companies optimize their marketing budget, where in case of Pillsbury same advertising that was shown in
Having different accounting standards in the world is a problem for multinational public limited companies and investors in order to be able to compare and evaluate financial statements (Doupnik & Perera, 2009). Due to the economic and financial scandals and meltdown in recent years, the pressure has been increased on some countries such as United States. Therefore, it must eliminate the gap between the International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). The world of accounting diversity will have consequences on such changes, and the standard convergence of US GAAP with International Financial Reporting Standards also largely affect corporate management, investment, stock market, accounting personnel and accounting standard setters. In addition, the convergence of accounting standards will change the approach for international accounting harmonization to CPA and CFO, it affects the quality of international accounting quality standards and the effort made toward GAAP and IFRS convergence
External Analysis: Microenvironment Introduction The two major competitive factors controlling the external environment are the Macro and the Micro environments. While the Macro deals with the PESTLE affects, the Micro environment deals with the current structure of the industry and the effect of the roles played by the giants of the industry. Figure A-1 The Microenvironment includes the effect of rivalry, suppliers, buyers, distributors and the general public towards the strategy formulation by the company. These factors are a big game changer towards the success and failure of a particular organization. These factors can be further evaluated using the widely used industry analysis approach, Porter’s Five Forces Model.
To set up a competitive advantage and enhance productivity, associations must see their clients, as well as, their opposition. It is noted that porters five forces analysis turned into an important part in any official’s business toolbox. The model gives direction to help structure key choice listing to make deciding industry engaging quality elements adding to the force of focused competition, the threat of new entrants and substitute commodities, and the bargaining power of customers and suppliers. Furthermore, depending upon a combination of these forces, approaches could be determined whether to enter an industry new to the association or to appropriate forces contributing to low business attractiveness (Fyall & Garrod, 2005). It seems porter 's five forces model depends intensely on building up the attractiveness of an industry.
They placed their product for a high price and target the middle and upper class people. According to Behera (2008), the pricing strategy include not only the price list but also comprise of on going offers, discounts and promotions. KFC is using skimming pricing strategy on the new product to reach a segment of the market that is relatively price insensitive and thus willing to pay for a premium price for a product. As the product is new, company need to adjust the price from time to time base on customer respond and cost of production. The product price will be firstly placed in the range of RM8 to RM15, base on the type and size of the meal ordered.
The market structure has great influence on the behaviour of individuals firms in the market. The market structure will affect how firm price their product in the industry. The market structure will affect the supply of different commodity in the market. When the competition is high there is a high supply of commodity as different companies tries to dominate the markets. A market structure will affect the barrier to entry for the companies that intend to join that market.