In analysing te macro-environment, it is important to identify the factors that might affect a number of fluctuating factors that are likely to influence the organisations supply and demand levels and its costs. The ongoing changes occuring in society create an uncertain environment and have an impact on the fuction of the whole organization. Therefore PEST analysis is a useful tool for understanding the 'big picture' of the environment in which Home Retail Group operates, and the opportunities and threats that lie with it. By doing this and looking at the outcome, we can take advantage of the oppurtunities and minimize the threats. Since the company is offering every type of product from garden tools to electronics which depend on the needs and demands of their customers, there are some external factors that the company must consider in order to stay in the competitive world of business.
Polictical and Economical
It is important for businesses to understand the polictical environment and polictical factors which may affect them such as tax policies,employment laws, environmental regulations and so on. It also important that a business know the economic stability when venturing into it. Argos, part of Home Retail Group, have an Indian franchise venture, which was set up in 2007. International expansion is one of the main representations of business success as it suggests the company’s ability to meet foreign market demands and supply resources needed for foreign operations. Financially, operating abroad can be demanding. Also, the company would need to adjust a number of its standard operation in order to adjust to foreign business practices. Therefore, there are many risks involved in global trade. Home Retail Group should have considered the foreign exchange rates which today is 1 pound to 72.7 rupees. Infosys Technologies Ltd is comfortable with where the Indian rupee is at now, and it is positive that there is a very slim chance of the currency rising in...
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