Business environment suggest the entire external and internal factor that influences the business. All the external factors and internal factors can work together or make a positive impact over the business. Business environment of a particular organization is dependent in four parameters and that are customer behaviour, competitor strategy, government policy and regulatory and also public opinion. Apart from that some external factors is beyond the control therefore it can be considered as the external constraints.
Advertisement plays one of the most important roles to increase the purchasing power and decision of the consumers. With the help of this marketing campaign any organization influences the customer and increases their business. Apart from that marketing campaign helps to remind the consumer about a particular product (Hamilton & Webster 2015). ).
Decision of the customer is dependent over the economic conditions. Some time different scenario also be identified that is if the quality of the product is very rich then consumers compromises with the cost
Purchasing power of a particular customer influences customer’s behaviour. That suggest before purchasing any product consumers analyses their capacity if that product is affordable or not and quality of the product is satisfiable or not. Government economic policy and regulatory
Organization like Woolworth is also dependent over the economic policy of the government because government provides financial help to the states. As a result, industries are sold out to stakeholders and that increases competition. In order to compete and huge taxation, policy increases the cost of the product. That affect consumer and shifted to the other product, which is less expensive.
Some time government makes changes in laws according to their political policy. The impact of this regulatory policy forces the organization to change strategy. As a result it reduced the customer base.
Competitive strategy makes huge influence over the customer mind because in that approach any organization like Woolworth focuses on cost. Cost of the product is too much affordable and quality of the product is appropriate then it will attract the customer. Some time innovation or launching of some different product grab attention and attract the customers (Gani & Al-Abri, 2013). Leadership with proper strategic alliance makes different any particular organization from other. Different promotional strategy, least or marginal profit makes huge impact over the customer.
Public opinion helps to set or pace of reform. It is not possible to overcome e all the problem by making new strategy. Interaction with the customer or customer's viewpoint is most effective in some cases. With the help of their view or from their suggestion any organization can identify all the loopholes that are affecting dissatisfied the customer. From the customer’s point of view or opinion, any organization can directly identify their faults and problems.
From the discussion it can be constructed that various kind of challenges and problem is addressed due to the reason of external factors. As a supermarket industry, Woolworth required all those external factors because lack of marketing reduces the customer base. Marketing campaign plays an important role because more campaign will reach more people but negative marketing destroy the marketplace and market value of the product (Wetherly, & Otter, 2014). Some time different organisation or industry provides same products with least cost then automatically it will shift the customer base. Therefore, it can be considered one of the major challenges. Beside that this entire factor increases the financial crisis because sometime to hold the customer bases any industry has maintained their cost period. As a result, it generates least amount or marginal profit. Therefore, it can be considered as a risk factor for any organisation.
In order to increase the business growth the primary factor customer base and appropriate customer base. In order to increase the customer base any organization or industry has to create market space or huge market share. For that, industries like Woolworths need strategic policy. Proper leadership is most important to make and implement different strategies. Therefore strategic management plan is also effective and need to perform in an innovative way so that it can attract the customer. Beside that to avoid all the risk factor, they can collect public opinion from survey or from face to face interaction.
From the above discussion it can be discussed that all the decision making factor of retail industry very dependent on some factor. Industry as Woolworths that provide supermarket or a retail industry need to focuses on some factors that are
According to this concept all the marketing department focused on a particular sector. If the organization wants to sell some cosmetic product then obviously the target audience will be the female customer (Shehu & Mahmood, 2014). Therefore, to increase the customer base and attract the female the customer the organization need to arrange their marketing strategy.
It consist some crucial factors and that are
Building proper brand image and at the same time emotional connection with the customer. As a result it will affect directly to the customer. Another part is to build up more effective relation with the customer the organization can create database with full of customer details. It will help them to make deeper connection with the customer.
Location makes huge improve. Convenient location will increase the customer rate. Therefore proper location can help to increase the business growth.
For any organization and for any sector knowledgeable and helpful customer service satisfy the customer with the help of this approach any organization can make more customer interaction and increase the customer base.
According to the concept, any organization can share their system with the vendors. As a result with this process it is possible to reach in a huge amount of customer. That wills helps to expand the business of the retail industry or any other industry.
Branding is related with the loyalty or vice versa. If the brand value of some product is higher than it will increase the demand for some time huge amount of customer demand, make some product brand. As a result, it increases the selling amount of this particular product (Khan & Quaddus, 2015).
A retailer generally built or increase customer loyalty based on distinctive and clear image and also maintain the image and reinforce that image through its service and merchandise.
From the above discussion, it can be constructed that all the external factors have huge impact over the business environment. From the discussion it can be deduced that in which way all these external factors making huge impact over the business. After that from the discussion all the risk factor and their solutions constructed. After this part discussion, focuses light on the decision making part that represent decision-making policy for any particular organization.
From this mentioned topic, it is possible to understand that all the external factors that makes success in the business and reflect all the factors that create difficulties and risk factors. From the above-mentioned discussion it can also be understood all these external factors are key principles for the success of any business.
Gani, A., & Al-Abri, A. S. (2013). Indicators of business environment, institutional quality and foreign direct investment in Gulf Cooperation Council (GCC) countries. International Review of Applied Economics, 27(4), 515-530.
Hamilton, L., & Webster, P. (2015). The international business environment. Oxford University Press, USA.
Khan, E. A., & Quaddus, M. (2015). Examining the influence of business environment on socio-economic performance of informal microenterprises: content analysis and partial least square approach. International Journal of Sociology and Social Policy, 35(3/4), 273-288.
Shehu, A. M., & Mahmood, R. (2014). Influence of entrepreneurial orientation and business environment on small and medium firm performance: a pls approach. Advances in Management and Applied Economics, 4(4), 101.
Wetherly, P., & Otter, D. (Eds.). (2014). The business environment: themes and issues in a globalizing world. Oxford University Press.
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