• Though profitable, slower growth in sales • Strong brand awareness • Share market with recognized competitors Value chain analysis is one of the fundamental elements of chain analysis. In order to analyze the environmental aspects of Costco, PEST analysis will be used. The PEST analysis covers the analysis of Political, Economic, Social, Technological environments of a country with reference to a specific object. The Costco Warehouse Corporation’s PEST analysis as follows: Political Costco Wholesale Corporation’s business practices get influenced by the political environments of the host and the home countries where it carry outs its business.
Hence, customers would feel more confident in their investment, knowing that their money would not be put to waste, especially as brand image is determined from the perception of existing, as well as, potential customers. Apart from the product aspect, Caterpillar also hold a strong brand image regarding its corporate social responsibility. That it strives to have zero accidents as well as creates products that benefit the environment. Additionally, Caterpillar holds a large portfolio of products. This supports the firm in catering for a wider range of customers and their needs accordingly.
Davison has already demonstrated this in that both venture capitalists and product development companies are willing to do business with Endius, despite its lack of cash, based on their relationships with him. Davison is vice-president of strategic applications and has strong relationships with venture capitalists as well as with product consultancy
However harsh the working conditions may be, there are still people who believe that the fast fashion industry is beneficial. They view the situation as providing jobs which otherwise would not exist, and in doing so promotes economic growth and hope for better jobs to arrive alongside the growing economy. Benjamin Powell, the director of the Free Market Institute, states, “So, this low-wage manufacturing, or so called ‘sweatshops,’ they’re not just the least-bad option workers have today, they’re part of the very process that raises living standards and leads to higher wages and better working conditions overtime. Your proximate causes of development are physical capital, technology, and human capital, or skills of the workers. When sweatshops
Also when their would be a loss of funds by not regulating these small businesses the government could just start receiving them from the large established corporations. These benefits from this would cause the small businesses the create jobs and bring money into local areas. (Small Business Size ...) The most important of all these reason are that small businesses are what are going to bring up the economy.
Therefore, job skills and education level should be changed. US workers should focus on more design, engineering, innovation, customized products and supply chain management. Government officials and trade representatives can organize these kinds of trainings to manufacturing workers, subsidies to factories and local economy that heavily depends on manufacturing, and enough confidence that certain industries will benefit with the country. I fully support the following quote made by As Senator Bernie Sanders; “I do not believe that American workers should have to compete against people in Vietnam who have a minimum wage of 56 cents an hour”. I think, Michael Froman should train the leading manufacturing companies to be more competitive in the world.
Many reasons explain this off-pricing retailing success in the early-1980s, such as the demise of the “fair-trade” law, the growing demands for name brands and the disenchantment with traditional retailers. (Marketing News, 1987) There were also the benefits for the marketers and manufacturers. It enabled them to assure more risk, since they could more readily recoup due to lower margins, and to strengthen their cash flow, because payments for merchandise were received immediately. (Marketing News, 1987)
These purposes might be beneficial in the short- run because it will encourage economic growth. Without trade barriers, workers from other countries can easily enter the country and resulting in the increase of unemployment. For example before ASEAN Economic Community (AEC) was placed, ASEAN member labor forces cannot enter Indonesia territory easily. But with AEC that is going to be established, Indonesia workers might be threatened because foreigner might have a higher competence than Indonesia own workers and this may lead Indonesia labor to lose their job and thus, increasing unemployment. But in a long-run, when trade barriers continue, trade barriers will hurt national economy.