PEST Analysis is a tool that helps to analyse the environment and constraints that are placed on developing and implementing an e-business strategy from outside the business. It is an acronym for Political Economical Social and Technological factors. 2.2.1 Political The major political factors affecting H&M are restrictions on imports and exports and relocation of production facilities since the company has chain stores in different countries. There is also a restriction on shipment of goods which is a concern for H&M. Relocation of manufacturing and outsourcing continues to be a contentious issue as companies seeks to maintain profit margins and reduce costs as well as receive incentives to locate production in specific areas.
At the same time, it is also essential for Marks and Spencer to determine the marketing and management capabilities needed to maintain the achieved market and competitive position. For the assessment of business strategic feasibility company before new product development should en sure whether they have enough technological and human resources to manage business functions effectively or not. However, Marks and Spence assessed all of these aspects at the planning phase of new product line which ensured that organisation have feasibility to manage specific strategic changes effectively with respect to timing. In consideration to qualitative and quantitative aspects of strategic proposal it is evaluated that with new product and market Development Company can
Moreover, the definition of this goal helps management of Target to take decisions local and global focus their energies and resources on the critical aspects that determine the overall result. The basic principles of TOC could help Target in supporting elements which contribute to improving managerial reasoning in the management of processes and interactions among resources, activities and people of company. Finally, it is valuable to identify the impediments that affect the achievement of the result that Target aims to achieve system (constraints). In particular, it is necessary to know whether the constraints are internal (in the process, resources, policies), or if external (the supplier market, the buyer 's market). After identified the restriction is advisable to apply the continuous improvement process proposed by the
Strategic Tools SWOT analysis SWOT analysis is an evaluation of the Strengths and Weaknesses and Opportunities and Threat of the business in connection to the internal and environmental elements influencing an element so as to build up its condition prior to the preparation of a long term plan (Tim Berry, n.d.). It is an effective way to recognizing the strengths and weaknesses of the company and analyzing the opportunities that available for the company and the threats that the company confront. Existing organization can know what they need to change and respond through using SWOT analysis and new organization could use SWOT analysis to investigate the existing business world and think what the new organization could do to compete with the
6.2 Create appropriate dissemination processes to gain commitment from stakeholders in an organisation In the implementation of a strategic plan, it is important that the company involves its stakeholders in the change process. This however, should be done with care as stakeholder involvement should be done based on their importance, influence to the change and the degree at which the proposed change will affect them. Peter Senge in his field book ‘Fifth Discipline’ elaborates on the levels of involvement of stakeholder groups based on the importance of the change to the organisation. Source: Change Management Toolbook (2010) Telling – is a situation where the decision has already been made by the company’s management, albeit in the best
Task 2a Marketing Environment Marketing environment of a company which consists of macro environment and micro environment will affects the ability of marketing management of the company to build and retain the loyalty and relationships with their target customers. Macro environmental factors will form opportunities and pose threats to the company, as well as affecting the marketing decision of the company. Besides, micro environmental factors consists of actors which close to a company that can affects ability of the company to serve others. A company can do well when they are able to understand and adapt well in the environments. There are six major macro environmental factors of a company which are demographic environment, economic environment,
The economic factor depends on outside control of the business, but it can affect the performance and marketing of the organisation. The main factors which mainly influence the economic balance of an organisation are political, economic, social technological, environmental and legislative factors. On an international front economic aspect is an essential interference in the performance of Tesco. Apart from the political stability of the region, factors also involve acts of legislation and tax rates. It is a major point of concern for the organisation, therefore it is essential to be aware of the changes in the policies.
It is important for the company working in the current market place to conduct a situation analysis based on different models like PESTLE, STEEPLE, SWOT and other so is to reduce the risk of any potential harm. Moreover, in case of Virgin Atlantic, it is important for the HR of the company to conduct internal and external analysis especially in regards of international market to avoid any risk in organisation’s operations (Bratton & Gold, 2012). Pestle Analysis It is important for situation analysis to highlight the external factors that directly or indirectly affect the working of the company. PESTLE analysis is based on political, environmental, social, technological, legal and economic factors that affect the working of the company. In case of Virgin Atlantic, it is important for the airline company to evaluate the political, technological and legal factors in detail in order to formulate their internal strategies accordingly in order to avoid any potential damage of the assets of the company (Kerzner, 2013).
PEST analysis is a strategic tool to learn about the organization’s working environment and the factors that could affect it. A PEST analysis including legal and environmental parameter is called a PESTEL analysis. Political Political factors can influence an organization’s activities in many ways. It can either be advantageous for the company or there can be levies and duties on the company. Government’s intervention affects the working of the organization.
This is "The Reversal" phenomenon in distribution. The root cause of conflicting goals in the logistics system: The main reason lies in the conflict between lower-level sub-goals and the methods used to achieve the goals of each sub-goal---the effective measures of a sub-goal will adversely affect the achievement of another sub-goal, resulting in a conflict between goal elements