Issues: Internal Issues - Yahoo! in 2008 had rejected Microsoft’s attempt to acquire its internet-search business. - The company encountered 78 percent profit decline in 2009, Because of this decline they reacted by cut down 5 percent of workforce. - Yahoo!’s online advertising business deteriorating due to fell in 13 percent of revenue in 2009. - Aggressive cost cutting increase 7 percent of Yahoo!’s profit but they layoff another 700 workforces. - The company closing of non-performing property, including twenty video services, social network site Yahoo! 360 and Web hosting GeoCities. External Issue - Yahoo Inc., in 2009 expressed slump in the economic growth which effect on internet content and advertising business. As a result, it led to a …show more content…
PESTEL analysis: Political - The problematic geo-politics. Economic - The slow of economic growth in the United States amid crisis in the housing and credit markets. - The economic situation caused a high price of consumables, fallen of personal assets value, rising unemployment. - Internet-related businesses have suffered from macroeconomic malaise. - The advertising and Internet Company reported disappointing financial results. - Low barrier entry (technical and regulatory) that make the planning or focusing of its business viability for existing companies difficult. - Broadband prices fall that ISPs seek new business strategies. Social - The United States population of Internet users is 211 million. - The consumers spend more their time online so that help to rise or to continues of internet advertising. Technological - Difficult to predict for (changes in legislative requirements concerning technology sharing- patent rights- and information security-future expenses and profitability of the companies
The three presidents Jimmy Carter, Herbert Hoover, and Ronald Reagan had problems before and during their presidency like Herbert Hoover had “The Great Depression” that cause an economic collapse and it was the longest and severe depression. Jimmy Carter had economic issue like inflation, unemployment, and balancing budgets. Ronald Reagan had problems with tax cuts, interest rates, and the military budget. The three presidents had problems that’s when they different economic policies on the economy. Economic downfall was the effect of the stock market crash that encouraged the cause rapid increase in bank credit and loan.
In October of 1929, the Dow Jones Industrial Average fell 25% in four days, this is defined as the Stock Market Crash of 1929. Billions of dollars were lost, countless investors were crushed by the amount of money they lost, and a plethora of people were forced into debt. The Stock Market Crash intensified the Great Depression, which was was a time of economic calamity in America in the 1920’s and 1930’s. The Great Depression was caused by the consolidation of overproduction, false prosperity, unemployment, banking crises, and the stock market crash of 1929.
Transportation industry is a good case to illustrate this point. Over the last few years, the industry has been transforming really fast, not even giving chance to the established players to cope with the changes. Taxi industry is now dominated by players like Uber. Car industry is fast moving toward automation led by technology firm such as Google. Nordstrom should not only do technological analysis of the industry but also the speed at which technology disrupts their industry.
2. Analysis of the Industry, market size, competition, etc. 2.1. PESTLE A market is the place or medium where specific activities are transacted between businesses and consumers. To study the macro-environment (i.e., external environment), PESTLE analysis is considered to be the most appropriate as suggested by Kotler and Armstrong (2010).
Bass Pro Shops is a unique retail store that sells high quality gears for many outdoor activities. Not only can you buy the best merchandise on the market, you can also experience workshops and life-like outdoor theatres located in the stores. It started as a small homemade bait shop located in Springfield, Missouri; it slowly making its way to having 50 retail stores in the United States. SWOT analysis consists of a company’s strengths, weaknesses, opportunities, and threats.
In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.
What Caused the Great Depression? The Great Depression was a devastating tragedy that changed our economy. In the U.S, the Great Depression shortly happened after the stock market crash in 1929. This sent Wall Street into a great panic and wiped out millions of investors.
Premier Inn is a famous British hotel brand with over 700 facilities worldwide. Being founded by Whitbread in the year 1987, the company is the result of a merge between Premier Lodge and Travel Inn. Premier Inn hotels operate under the strategic partnership between the leading international companies and Britain’s leading hospitality firm Whitbread PLC. This allows enhancing the popularity of the Premier Inn brand all over the world.
Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.
In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.
Pestle Analysis Political Factor Eataly operates in global environment with their operation spread all around the globe; the operation of the company is influenced strongly by political situation of the country where they are doing business. As Eataly have flexible policies to adjust in an unstable economy (Reijers & Mansar, 2005). Economic Factors The entire planet has witnessed the economic decline and hence the characteristic of purchasing products has been greatly affected all companies without exception Eataly. In addition, the income level of Europe is relatively uneven which makes some people fail to pay for products offered by the company (Chaffey, 2009).
We will now be doing a more detailed analysis on these six PESTEL factors. PESTEL refers to the Political, Economic, Social, Technological, Environmental and Legal forces,
PESTEL analysis is a tool that is used to analyse an organisation’s macro-environment. Political Environment The incident of 9/11 has affected the airline industry adversely. The number of tourists to different countries has immensely decreased due to the fear of safety and security issues. On the other hand countries have put measures in place such as strict visa policies and border controls in an effort to combat terrorism attacks.
PESTEL ANALYSIS Pestel is a strategic analysis tool used by organizations to scan the macro-environment in which they operates, helps to identify external factors that can affect the organization's business activities and performance (Gockeln 2014). Macro-environmental factors are those that affect clothing industry and the industry have no control over rather than adapting to it. By so doing, it gives ability to differentiate themselves from potential competitors and sustain performance. Table 2 depicted, (PESTEL) Political, Economic, Social/ Cultural, Technological, Environmental and Legal external factors. Political factors: these are examined from the political stability point of view, which covers government policy intervention in the economy, deregulation, taxation changes, as well as the attitude of political parties on the government policy.
PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.