The assignment starts with an introduction and Macro-environment analysis of Italy and 12 C frameworks. Macro environment is based on economic factors, social cultural forces, political and technological things that affect the organisation inside. It is important for a company to identify the possible political risk s in the country. Political risk is based on changes in the political environment that may have a direct impact on business. The political factors have influence on the tax that the business has to paid, the currency of the country and the business procedures that need to be carried out in order to be able to open a business in Italy. The economic factors are indicative of the economic stability of the country and are based on the GDP, the global rank of doing business, the influence of tourism. The social environment includes the cultural differences between Italy and the US and is based on people behaviour, the capacity to pay and the employment recruitment process. The report shows that people have changed their habits and life style to lower-cost activities as a result of the recession. The technology factors describe the advantages of using e –marketing. The clothes/apparel market is analysed. This is an important factor as it shows who the main leaders in the market are. Porter Five Forces Module helps to identify the competition based on potential entrants, buyers power, substitutes, suppliers and competitive rivalry. The second part describes the principal challenges that the Italian market presents to the company in selling its products. The third part is about the possible entry module for Forever 21. The entry module is often selected according to the organisational development. The final part is about the marketing mix and the elements that Forever 21 needs to adapt to.
List of contents page
Executive summary 2 List of contents 3 Introduction 4 Geographical area 4 Political factors 4-5 Economic factors 5-6 Social environment factors 7 Technologies factors 8-9 Foster five forces 9 Task 2 9-10 Task 3 Module entry 10-11 Task 4 Marketing mix 10-11 Bibliography 12-13 Appendix 1: Starting a business in Italy 14 Appendix 2: Business procedures 14 Appendix 3: Country comparison 14 Graph 1 Europe retail industry segment 2009 14 Graph 2 Italy Apparel industry 15 Appendix 4 Hofsteade module of culture 15 Appendix 5 Advertising media in Italy 16