Seminar Tutor= Maurice Starkey
Seminar held on= Thursday 13.00-14.00
Luxury Item= Golf Clubs
Analyse the business environment of manufacturing golf clubs The PESTEL model shown in the appendix at the end of this document highlights the different issues which affect the business environment for a golf club manufacturer. Within this document the three key issues which affect this business will be outlined and analysed. Within the economic area affecting the business the new economic recession occurring over Europe and America will directly affect the golf club industry as a whole as well as for this business specifically. The current economic climate is unsteady and falling rapidly. Everyday businesses risk bankruptcy and liquidation. The market niche for golf clubs has always been relatively small as they are a specialist good, however in the current economic situation their need may be reduced even more. It is not just the European and American sales which will suffer but worldwide sales. The outlets used to sell this product will mostly survive as a whole as many sell what is termed essentials, such as clothing and footwear. Their overall performance will be steadied by the sale of these essential items. Sales of golf clubs will fall due to the new found lack of disposable income. Their necessity will vanish and people will make do. The company’s capital and turnover will be reduced as sales figures fall. It is most important to keep sales moving to ensure that the company’s financial situation does not deteriorate. Rising interest rates means that funding for the company and indeed the customers themselves will be reduced. The amount of loans given is going to decrease according to National statistics and the Bank of England. However according to Golf Club’s and Country Clubs the general type of members and therefore the people who buy the actual golf clubs used to play the game ofgolf,...