Know Your Business Environment Unit No. 1: The Business Environment Pervez Ghazi Shaikh Date Submitted: 31/10/2016 Carl Loraine Cruz 20154176 Target is the organization that I have chosen for this assignment. Target is a famous discount retailer in United States that was founded by George Dayton. It was formerly called Dayton’s Company in 1910. Target has over 1,700 locations as of 2016 and it has 341,000 employees.
Even when the economy takes a hit Target sales continue to grow, proving that it is one of the top retailers in the game at the moment. Its growth so rapid, it has opened stores outside the U.S. Porter's five forces model shows Targets rivals and potential risks to the company also its strengths and weaknesses in the market. Competitive rivalry is very big in the retail/grocery industry. There will always be different firms dominating the market at all times, some more than others. Walmart, Costco, and Amazon hold a big rivalry against Target.
According to Porter’s value chain analysis company activities are divided in Primary and Supportive activities. Primary activities are directly related to creation of product, process sale and services. Supportive activities are provided to sustain primary activities. For a worldwide retail outlet like Target to add a value on its product depend upon the continuous supply of cost effective merchandise and add value to the costumers. Value Chain Analysis of TARGET Inbound Logistic Process Target is a retail store selling goods worldwide through its retail stores located at various part of the world.
There are several factors in different countries that can affect the success of a foreign company in a nation. One such factor is the law of the country. Another country might have some laws not found in the United States that can affect Wal-Mart's merchandising strategies. For example in Germany, there is the Store Closing Law (Lyons 9). The regulation limits the number of hours and days that a store
Analyzing how differences in between cultural affect international business. Understanding, knowing and identifying the role of cultural differences can be the key to being successful in business internationally. Whatever department you belong to, cultural differences will have an impact on your profitability. To gain competitive advantage and have the capacity to build a positive image in the business world, it is important to improve and increase the knowledge of international cultural difference in business. Factor of cultural differences of different countries which can have direct impact on the business are: • Communication Around the world, all of us have been taught to follow different cultures.
But all companies use those outside analysis to help in marketing strategies of an organization and they used macro environment to implement and formulate marketing strategy to become successful in the market also to influence the decision of the consumer. Macro environment may affect business strategy by consisting of demographic, economic, natural, technological, political, and cultural factors. Demographic factors is all about human population that includes size, location, density, gender and income also it group people that may have particular set of qualities and behavior. Examples is an aging population in the Philippines and it increasing total of teenagers. Teenagers are the largest segment who buy cloths.
Rising concerns on the economics in today’s era of globalization has definitely left a huge impact on the international business organizations. Many of the organizations try to adapt to with the unpredictable economic changes by applying the external environments methods. This is to increase the consumer confidence as well as increasing the profits of their organizations. External environment refers to the environment that has indirect influence on the business. Some external elements can harm the organizations if it is misused therefore it has to be monitored at all times.
CHAPTER ONE INTRODUCTION 1.1 Background of study: “Business Environment encompasses the climate or set of conditions, economic, social, political or institutional in which business operations are conducted.” Arthur M. Weimer 2016. According to KJ Singh, a business enterprises cannot exist in vacuum, it requires necessary factors and forces such as; natural resources, places suppliers, competitors, Marketing intermediaries, customers, economic, natural forces, cultural forces, political forces etc. The business environment can be categorised into two types; internal environment and External environment. Understanding the function and behaviour of both kind of environment has resulted in the success of Small and Medium Scale business in Nigeria, although not all environmental
The profits margin decrease and competition may shift to differentiating products (Mullins and Walker, 2013). 4. Due to its leading operations, the company faces many imminent problems as most key competitors focus on exposing the flaws of the enterprise. 5. Due to its global operations, Walmart is likely to experience political liabilities as it operates in foreign
Firms that respond well to these types of trends tend to have more improvement in their performance (Hill, nd). However, many of the scholars have described these two effects which are being caused by the globalization, related literature review reveals that empirical work conducted on these on such business firms and effects is scarce even by now (Derdenger & Kumar). That is why, the main purpose of this dissertation is to analyze the effects of global markets threats and opportunities on the overall performance of the firm and cooperation of firm in international marketing performance and marketing alliances. Objectives and Research Questions The primary objective of the study is to acquire an even better understanding related to the effects of globalization on international marketing cooperation of firm and firms’ performance, both in the emerging economies and in the developed economies (like the Thailand and US respectively). The first questions of the study are: Is the performance of the firm being affected by the