1. First tell me what your new business is. Do you provide a service, or a produ
ID: 1169891 • Letter: 1
Question
1. First tell me what your new business is. Do you provide a service, or a product? Define this business you’ve spent so much time dreaming of starting.
2. Next develop a PEST Analysis using the template below.
3. Finally, describe how you’re going to grow this business in the global environment.
Parts 1 and 2 will be a Word Doc. APA formatting is NOT required. You are to use, and cite, no less than 2 outside sources. Minimum of 2 pages. That is, the BODY of your paper is to be a minimum of 2 pages. Title pages, Abstract and resource pages do not count to the total.
Please number questions 1 and 3 and provide at least one space between responses
Explanation / Answer
Departmental store I have chosen is a large store which offers a wide range of goods and services which can be divided into various divisions and can be managed by the buyers themselves and it is a separate business.
The department store is involved in offering all household items; goods required for day to day use namely groceries, house cleaning items, bags etc.
Hence it is a store that is involved in selling all kinds of items in a single window that is convenient for the customers to buy as they get all the items in a single place and need not go anywhere. These types of shops are catchier to the customers as they can complete their monthly shopping in a single place and need not waste their time or effort in going anywhere. Customers also get attracted by the facilities offered, quality of goods and services and the satisfaction of completing their shopping in a single place.
Political factors: political factors are government policies, rules, regulations that influence the revenue and the profitability. Political stability has an influence on the supply chain and sales of the business. There are number of political issues that can be a hindrance to run the business. The retail business especially has the problem in entering the Asian countries. For example India has still strict laws and regulations on FDI. All these factors can be a challenge for the retail business to operate profitably in international environment
Economic factors: the state of world economy will decide the sale and profits of the industry. The labor market and existence of good economic conditions can increase the disposable income and also consumer confidence. All these can be good signs for retail business. A good shape of economy can bring higher revenue and profits for the retail business. Better economic scenario means good sales growth and shape of the retail sector.
Social factors: social factors are nothing but demographic factors and changing consumer preferences which can also impact the retail sector. The preferences keep changing for each and every generation. Hence it is the biggest challenge for the departmental store to meet the changing customer preferences by designing the store in such a manner. These days’ customers give lot of preferences to products that has more technological impact. As there are more competitions in retail businesses these days, the popularity of the retail business depends on how well the customer’s experience has been crafted.
Technological factors: growth of digital technology has given rise to many retail businesses. Hence in this new business, technology plays a vital role and hence adequate use of technology makes the customer experience better. The new business can travel to the route of success by introducing new technology like cloud into the business coming years are to view more technological things that will be placed at the center of the business.
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