Introduction

Topics: Convenience store, Dairy Farm International Holdings, 7-Eleven Pages: 9 (2563 words) Published: December 19, 2014
1.0 Introduction
Dairy farm International Holdings Company Limited is a leading pan-Asian retailer with it’s base in Bermuda. Dairy farm group involved in the processing of convenience stores, supermarkets, hypermarkets, health and beauty stores and home furnishings stores under well-known brands. It is listed in London Stock Exchange, with secondary listings in Bermuda and Singapore stock exchanges. Dairy farm is a member of the Jardine Matheson Group. Dairy farm group of companies was founded by Scottish surgeon Sir Patrick Manson and five prominent Hong Kong businessmen. At first, it was operated as a small business venture to provide cow’s milk to the people of Hong Kong in 1886. From such humble starting, Dairy Farm grew larger and innovate itself over in next 100 years to become one of the major food retailers and commands a top positions in Asian markets.

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2.0 Strategic Analysis
2.1 External Analysis
PEST Analysis
It is a simple tool used in situation analysis to identify the key external ( MACRO environment level ) forces that might affect the organization.

PESTEL analysis

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Aim OF Analysis

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Political Factors
This is the most important influence on the regulation of any business form. We need to see how stable is the political environment , how the government policy/law influence on our business, government’s position on marketing ethics and the economy. Since it is apparent that the Dairy Farm is expanding continuously, it is wise to deal directly with the proper authorities in the respective markets that they intend to operate in, for example. Government may provide environmental protection law and control the marketing strategies such as advertising or selling of tobacco, alcohol, cigarettes etc. They can also control on pricing on products like sugar, rice or drugs. In order to operate in different countries and different regions, the company needs to accomplish all the requirements acts and satisfy all the necessity for doing business. The company must also be acquainted with the law in order to know what their responsibilities and their possible liabilities.

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Economical Factors
Branches of supermarkets, hypermarkets, convenience stores of Dairy Farm group might have the tendency to experience the hardship in instances where the economy of the respective countries are hit by inflation or changes in the exchange rates. Therefore the company needs to put up with the issue of the effect of the economic environment. Particularly, the problems of the company depends on the response of the consumers on these fundamentals and how it could influence their general sale. In regarding the operations of the company, Dairy Farm tend to import their raw materials into a specific country’s territories if there is a dearth of supply. Exchange rate will also play a significant role in the operations of the company. Hence, the company need to prepare to bear the frequency of the shifts in the inflation rate as well as the fluctuations in the exchange rate which affects the operations of any company. Social Factors

The social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational and ethnic conditioning. As social attitude change, so too does the demand for various type of books, leisure activities, clothing, and so on.Like when the other forces in the remote external environment , social forces are dynamic, with constant change resulting from the efforts of individual to satisfy their desires and needs by controlling and adapting to environmental factors. One of the most profound social changes in recent years has been the entry of large numbers of women into the labor market. This has not only affected the hiring and compensation policies and the resource capabilities of...
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