Tk Pestel Analysis

Introduction and company overview-

TK, an American furniture retailer, is established on the concept of production mid rage of functional, well-designed and acceptable cost home furnishing products. Tk concept journey continues as we decided to expand to the Asia pacific of the world. Our factories are located in India as well as Vietnam. Our sales turnover is recorded as 20 billion for the year 2013. This report takes a strategic analysis of TK through employing PESTEL, SWOT, Porter’s 5 forces, Usage of the four basic functions of management which is planning, organizing, leading and controlling, General conclusion and lastly recommendations.

Micro environmental analysis

Politcal-

The corporation’s after-tax income is affected by the

For instance, old people or an ageing population is less likely to buy furniture( Mintel Oxygen, 2010) where younger generation would demand trendy and well designed furniture. Changes in demographics affect certain products in demand. For instance, a major shift of rural population to urban areas due to job creation indicates higher demand of less costly products for new families to move in and get settled down. Cultural factors, fashion trends and consumer behavior also regulate demand trendier, less bulky, and easy to assemble

With the attractiveness of the DIY furniture industry, TK continues to compete and grow in markets such as india and Vietnam. However global recession had affected the furniture industry which makes it the hardest hit industry then the rest of the sectors. As a result premium priced furniture manufactures dream has been said to increase their market share. Hence competition is fiercer than ever. Considering the fact that furniture is now low spending priority competitive rivalry is not likely to