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The Business Report
Strategic Retailing enterprise and management
Table of Contents.
Importance of key external micro environment factor
Importance of the external micro environment forces
Importance of external influences on employee
Importance of internal influences on employees
key strategic factor of microenvironment
The golf house club has been opened as a new business with in New Zealand catering for increasing Asian population in New Zealand. This Golf house club is going to been open in Domain Road in Mt Roskill. I will have some strategy some plan for my business. I have chosen this area to target on Asian people, there would be everything according to their taste so they can come and enjoy coming in golf club. I would recommend some Asian culture dishes and their some special snacks, tea. As I am going to open a new golf store I would defiantly require some staff and I will hire some Asian staff which would make Asian people happy. I would have some gym system and some shopping things, membership card and bar and some park for their leisure time. They have strategy to “look good, feel good and play better. They have special offer of member ship card. If customers have that card then they can get half price for the golf product. They also have some golf course for that who don’t know about golfing and then they can get proper study for that and as they motive to make customer perfect in golf. In there they have special arrangement for tea customers can take rest having tea and happy to be a customer of golf club. Customers can hire venue that what and where to do. They have special care for customer they have some special arrange of spa where they can take rest. There is gym for gym lovers
Importance of key external- micro environmental factors
The external environment refers to the environment outside the boundary. The firm or an organisation has no control over the external environment, they cannot control over the changes but certainly they can adjust to the environment.
The most important external factors are discussed below:
For any type of business customer plays a very important role, they are the users of the product and because of them the organisation runs successfully. Customer has two types of environment changes which are as follows:
- Demographic changes:
Demographic changes are related to the age, population gender, and economic class of the customer. These changes have major effect in the organisation.
- Preference changes:
The customer preference would be different according to the time and situation. Their preference changes from time to time because of many factors like taste, age, and trends and different other situational factors.
For golf house, I have got very good appreciation and response from the customer. It is a result of good advertisement and helpful staffs. Similarly, customers are providing good word of mouth to their friends and other social circle as well.
It is very important to know about the competitor’s policy and their strategies. It is again out of our control but we can see the strategy and accordingly make changes in our business as well because to get better results in business it is needed to know what your competitors are doing.
Apart from this, the internal competition is very competitive as well because in the store there would be different products from different companies, the selection of one product over the is also a huge challenge for the business because those stocks would convert into remained stocks as well.
There are two types of competition like as:
- Direct competition:
Direct competition is something which different companies which would be in same industry. For an example, countdown and pack n save, these are both big supermarkets which sell different products. Both of these companies are biggest competitors of each other. People considerate these supermarkets in terms of price, quality and availability. For this kind of direct competition it is very important to see what the other competitor is doing.
- Indirect competition:
Indirect competition is directly selling the same kind of the product but somehow similar. For an example coke and energy drink. Coke is a soft drink and even energy drink is very beneficial. So a customer can chose between these two, these are two alternatives, if the customer is looking for something cold and chilled then he can go for any of these two drinks.
- Suppliers and Distributors:
Suppliers and distributors plays a vital role in the business. Suppliers and distributors are related to the golf house differently. For golf house, suppliers are closely related because they are the one who provides all the products on time according to the order given. Some distributors are closely relate to suppliers whereas some suppliers are not related to distributors, those would be directly in touch with us. For an example, we have suppliers which supplies golf materials and there are some suppliers which provide clothes in the store. We have to balance between suppliers and distributors in an intelligent way and in proper way.
Nowadays media has played a trust developing tool in the business. Media is like all the outside medium from which is an outsider get to know about the business. Media plays a very important role in developing the trust factor. For an example, if in newspaper there is written a good review then customer will follow that and they will visit the store as a result of good will. Media coverage is like a kind of building the strategy in the business, it helps to increase the number of customers and helps in building the long term relationship with customers which is very important. For an instance, if we are organising any event then through media we can transfer it to many people and to different social groups.
Similarly, we can also make some promotions and advertisement through media so which is why it is equally important to maintain a good relation with media.
Importance of external micro environment forces
In the business or in the organisation, internal and external factors affect in the retail business. It is very important for a business to keep it always ahead of the competitors so which is why it is needed to have the upgraded strategies in the business.
Multicultural is the kind of culture where there are mix of all cultures like from different backgrounds and different ethnic groups. For our business it is very good opportunity to have the multicultural environment and for us we are our targeting our business mostly for multicultural people which is why we have selected the place where we can find lot of multicultural people.
It is a type of culture where in one country there will be only two kinds of cultures. This type of business is suitable for only that kind of business where products or materials are specifically made for those culture people and as we are focusing for multicultural people this kind of culture doesn’t affect u.
Importance of internal influence employee
For any business or any type of organization the support of the employees is very important because the working environment is the one which influence the positivity in the environment. The good working environment and good employees are the assets of the organization.
If the employees are not doing well with their work, we can provide training and necessary guidance in order to make them work more effectively.
The mentioned below are some of the important key factors which influence employees to perform better in the organization.
- Positive environment:
As we are focusing for multicultural people in the business, so we will be having the multicultural staffs in the business. When there will be different it is very important have the mutual understanding among the employees because the positive environment makes it easier to perform well in the business and they can even perform more efficiently as well.
Technology helps to make task more easily and more conveniently, So is the company wanted to perform in a well manner they need to provide necessary training of using the technology. For an example in countdown staffs are using the system technology, they work from computer which is why they can perform efficiently.
- Strategic plans:
Strategic plans are needed to be regulated every time so that every staffs can improve their mistakes and make their performance better. For an instance, if one of the staff has some problems with other staffs then we can make him well adjusted in the culture by making the strategic plans.
Importance of external influence over the employees
There are so many external influences over the employees, most of them are unpredictable and cannot control from the organization.
Some of them are discussed below:
- Locus of control:
Employees get all types of influences especially internal and external. Some employees have a potential to control the different environment affected by different surrounding. The locus of control is the level of understanding the situation and ability to understand the situation. Sometimes the influence from the internal and external factors may affect negatively or positively, it will all depend on the ability to take the things in positive or negative manner.
- Customer demand:
All the customers are different compare to each other, each and everyone is having different requirement and different queries. Sometimes if the employees do not get along with the customer, there might come the problem because there would be problem in understanding there might occur the gap in the understanding level. Employees should have developed the higher level of understanding and should be able to cooperate or adjust the environment.
- Strategic plans:
Strategic plans helps to manage the employees, if they are having any problem in the understanding or having the adjustment problem then it could be solved by strategic plans even depressions and negative feeling which occurred in the working environment.
Key strategic factor of macro environment
Some of the key factors of macro environment is discussed below:
- Political factors
- Legal factors
- Technological factors
- Socio-cultural factors
- These factors include the change in the population, age, gender, and ethnicity, status of a person, education and cultural factors. These factors keep on changing so according the changing behaviour their taste and choice changes.
- Economic factors
- Environmental factors
It includes trade cycle, economic tools etc. This business retail industry is very much dependent on economy of the country because the more people economic condition would be good the more they will spend. So the business is very much depends on income and economic situation of the customer.
- Growth of consumerism:
Nowadays customer are very much demanding they know the fact that without them the business is not going to run. So the growth of consumerism is sometimes good and sometimes not very good for the business.
- Impact of legislation:
Every business has some government laws and regulations to be followed. Sometimes the change in new rule of government may affect in the business for an example the increment in the taxes.
Role and impact of technology
The technology refers to the internet, e-business, e- commerce, smart cards etc. Nowadays because of the growing technology even in the retail business all new advanced technology has been used. All the payments are done from smart cards like Eftpos cards, debit and credit cards; people do not carry cash any more to buy anything.
Similarly, nowadays people can buy everything via online as well; there is not even a need of going in the shop for an example, EBay, Amazon etc.
Even in the retail store everything is done by scanning the bar code and price would automatically shows in the system.
In the golf house, we would be having the technology which would help our business to run effectively and smoothly.
At the end, I have invested in this golf house and I am very much hoping to get best results and with the time, I hope to see my business growing as well.
The mentioned factors would definitely help me to grow my business and with the support of my staffs and employees I hope to see my business getting success. It will definitely increase my GDP and also in sales.