[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]
Table of Contents
Executive Summary 3
Business Environment Analysis 5
Macro Environment 5
Economic Factors 6
Environmental Factors 7
Legal factors 7
Technology Factors 8
Societal values and lifestyles 8
Micro Environment 9
Bargaining Power of Suppliers 9
Bargaining Power of Customer 10
Threat New entrants 10
Rivalry firms 11
Substitute Products 11
Internal environment analysis 12
Core ...view middle of the document...
DJs has 2 warehouses and 35 department stores located in most Australian states and David Jones Online enables costumers to view and purchase the finest brands across fashion, beauty and home on the Internet. The two main business segments of DJs are department store and financial services.
Peter Mason is chairman and non-executive director. Paul Zahra was promoted as Chief Executive Officer and non-executive director of DJs. Paul Zahra plays a very important role on preparing future strategic direction plan for DJs.
There are five important key changes in today’s retail environment such as:
1. Consumer’s buying power still remains weak. This becomes apparent when consumers decide to make purchases on optional goods.
2. Business costs continue to increase due to tax and compensation packages which not only drives up variable costs but also fixed costs
3. Consumer shopping behaviour have changed due to the technology and an ever increasing number of interactive devices
4. Increasing number of competitors nationally and internationally
5. Agenda and policies of retailers must significantly comply with the commercial performance
Business Environment Analysis
In this section, business environment of DJs will be analysed. Business environment is anything that surrounds an organisation as well as anything that affects the decision, strategies, processes and performance of the business (Kalibra, Andrews, Brownell, Johnny & Ziadee, 2011). Business environment consists of macro-environment, microenvironment and internal environment (Claudiu, Andrei & Gabriela, 2011). Effectively analysing these three factors of business environment will allow the organisation to develop efficient strategies that will eventually increase the organisation’s value as a whole. Therefore, it is very important to take environmental analysis into consideration while developing sustainable competitive advantages; identifying opportunities and threats; and providing opportunities for productive co-operation with other companies (Yuksel, 2012).
Macro environment consists of the factors at work which will directly affect the firm’s activities and markets in which an organisation competes (Stonehouse, Campbell, Prudie & Hamill, 2004). Denis (2006), on the other hand, claims that macro environment increases the costs for the firm; for example, adjusting technology and decreasing the economy growth in the long run. Due to the constant changing of the market environment, every company has to be flexible and adaptive which causes an intense competition in the business world. It is not easy to find companies that do not want an effective marketing that leads to development of sustainable competitive performance in the complex, confusing, paradoxical and rapidly changing markets they face (Piercy, 2002). PESTTEL approach will be used to analyze macro-environment that affect on DJs. Using PESTEL analysis will enable company to...