Marketing Principles BMM107 Assessment
Mar 13,23Question:
Background:
Marketing Principles BMM107 Assessment 2A: Marking Rubric
Student Name: Student Number:
| Criteria | Less than 50% | 50-59% | 60-69% | 70-80% | 81- 100% | Score |
| 1. External Analysis: – Evaluation of macro/ PESTEL trends micro/industry environment (Porter’s 5 forces, KISF, Market and analysis of competitors
6 marks |
No evidence of research using credible sources No or poor demonstrated understanding of PESTEL, micro analysis or competitor analysis conceptsNo or poor application to the case Provides little or no assistance to marketing decision makers |
Research is evident but information gathered is limited and/or poor quality (supported by less than three credible references) Demonstrates some understanding of macro, micro analysis or competitor analysis concepts. Limited correct application of concepts to the case. Provides limited assistance to marketing decision makers | Research is evident. Some quality information gathered (supported by three or four references). Demonstrates good understanding of PESTEL, micro analysis or competitor analysis concepts. Some critical analysis is evident but may not be logically considered. No conclusion about external situation and Analysis provides some assistance to marketing decision makers | Research is evident and quality reliable information (supported by five references) Demonstrates excellent understanding of PESTEL, micro analysis or competitor analysis concepts. Well applied all tools to the case Good critical analysis has been integrated logically Conclusions provide clear guidance to marketing decision makers | Quality research is evident. High quality information used from a six or more references) Demonstrates exceptional understanding of PESTEL, micro analysis or competitor analysis concepts. Applied all analysis tools to the case in an outstanding way. Conclusions provide strong guidance to marketing decision makers | |
| Internal Analysis of business
Including competitive advantage, analysis of business’ marketing strategies 4Ps and SWOT 4 marks |
No evidence of research using credible sources No or poor demonstrated understanding of competitive advantage, 4Ps or SWOT conceptsNo or poor application to the case Provides little or no assistance to marketing decision makers |
Research is evident but information gathered is limited and/or poor quality reference. Demonstrates some understanding of competitive advantage, 4Ps or SWOT concepts. Limited correct application of these concepts to the case. Provides limited assistance to marketing decision makers | Research is evident and some information evaluated. Demonstrates good understanding of competitive advantage, 4Ps and SWOT concepts. Good correct application of these concepts to the case with logical, critical analysis of the business. The conclusions made provide good assistance to marketing decision makers. | Good quality research is evident and all information analysed/evaluated well. Demonstrates good understanding of competitive advantage, 4Ps and SWOT concepts The evaluation and conclusions made provide very logical assistance to marketing decision makers | Excellent research is evident and all information exceptionally evaluated. Demonstrates outstanding understanding of competitive advantage, 4Ps and SWOT concepts. The evaluation and conclusions made provides excellent assistance to marketing decision markers | |
| Identification and detailed analysis of Target Market (Demographic, Geographic, Behavioural and Psychological factors).
5 marks |
No evidence of research or critical analysis of information | Summary of target market is basic and based on limited quality research. The analysis demonstrates little knowledge and understanding about the target market concepts. | Summary of target market is good, providing a general analysis of at least two characteristics of the target market and how these characteristics impact upon the decision making of the customer | Summary of target market is excellent, providing a good analysis of all characteristics of the target market and how these characteristics impact upon the decision making of the customer | Summary of the target market is excellent, providing an outstanding analysis of all characteristics of the target market and how these characteristics impact upon the decision making of the customer. | |
| Explanation about why a marketing plan is needed
The significance of each component (4Ps) of the marketing mix and their inter-relationships 1 mark |
No evidence of research using academic references. No or poor explanation about either or both topics | Research is evident but information gathered is limited and/or poor quality reference or used only recommended text book.
Passable explanation of both topics. Demonstrates limited understanding of the topics. |
Research is evident and gathered from recommended text book and at least two other academic sources.
Good explanation of both topics. Demonstrates some understanding of the topics. |
Research is evident and gathered from recommended text book and at least three other academic sources.
Excellent explanation of both topics. Demonstrates deep understanding of the topics. |
Quality research is evident and gathered from recommended text book and at least four other academic sources.
Outstanding explanation of both topics. Demonstrates exceptional understanding of the topics. |
|
| Report Structure, grammar, clarity of writing, academic intext referencing and reference list
3 marks. |
Poor report structure. Did not cover all topics
Poorly written difficult to read More than 15 grammar and/or spelling errors No or little intext referencing or many errors in reference list |
Used report structure on BMM107 BrightSpace
Adequately written and reads well Many (11-15) of expression, grammatical and/or spelling errors Intext referencing / reference list fair but contain many errors |
Used report structure on BMM107 BrightSpace
Reads well 6-10 expression, grammatical and/or spelling errors Intext referencing / reference list are good but contain a few errors |
Used and applied the report structure on BMM107 BrightSpace
Reads very well Limited number (1-5) Expression, grammatical and/or spelling errors Intext referencing / reference list are very good contain 1 or 2 errors |
Used and applied the report structure on BMM107 BrightSpace
Excellent written expression and conclusions clear and logical. Superior grammar and spelling skills Intext referencing / reference list are excellent with no errors |
|
| Part A of Marketing Strategy – Mark out of 20% | ||||||
Comments:
ASSIGNMENTS 2A and 2B – MARKETING PRINCIPLES
TONY’S SUPER-VALUE HARDWARE – Case study
Business Description
Tony’s Super-Value Hardware is located in Main Street Hamilton, right in the heart of the community. Previously known as The Big Hardware, the store has been a huge part of Hamilton for over 85 years. Two years ago, Tony and Sarah Casey became the new business owners. They now have two [2] casual staff, Jack Bentley who is from Hamilton, and William McIntosh from Portland.
As Tony and Sarah explain, “we provide timber, hardware and household goods to the people of Hamilton, and surrounding areas. We service both the trade sector and general retail sector and are proud of the level of customer service we provide. Our business model is 70% trade and 30% retail, and this is quite indicative of the sales results we produce.
“Our business is accessible to all. Any customers using a wheelchair, motorized scooter or pram can enter using our ramps in the rear entrance, and anyone not wanting to leave their car can drive through our rear driveway. We are family friendly – we have a private bathroom, and space to feed young children if requested.
“Our store is also pet friendly; we love to see our customer’s four [4] legged friends. We also offer online shopping to anyone wanting to shop from the comfort of their own home.
“Our successes and growth have been recognised by the Independent Rural Hardware Group; we are the current holders of the title for best small format hardware store in Victoria/Tasmania. This award is hotly contested, and we are extremely proud title holders.
“Our business has grown substantially in the two years since we have taken over, and we believe the following factors contribute to this growth.
“Firstly, we are part of the Independent Rural Hardware Group (IRHG) buying group. Being independent means that we have the opportunity to get to know our customers, and stock a range that is reflective of the wants and needs of the Hamilton community. We target our store specifically to our customers’ requirements and are in the unique position to offer a fully shopper led range.
“Of course, being part of a bigger buying group also allows us access to a huge warehouse where we can order in any special purchases that we don’t stock all the time. This means we can make products available to our Hamilton community that were never available before, at a competitive price.
“Secondly, the facility to shop online and use Afterpay. As we all know, the way consumers shop is changing, and this facility has been a really beneficial addition for us, for the more internet savvy consumers. Of course, we are always available to help those who are not as savvy with computers instore and place the orders on their behalf.
“Thirdly, consistent customer service by locals. We have a small staff, two business owners and two casual staff, who are all local. We pride ourselves on the small details, remembering to ensure that each customer feels like our priority, no matter how many people we serve that day.”
Business Vision
Firstly, to increase our garden department from 17.59% to 33% of our total retail sales. Short term, we will fine tune the range we are currently holding; long term we will introduce a garden centre, and increase our stock holding in this category from 18.7% to one third of total retail stock holding.
Secondly, we will stock a range of giftware items before the major celebratory days –We trialled a small giftware range in the week prior to Mother’s Day, and sold 80% of the stock we purchased. Long term, 8% of our core stock range will be giftware all year round.
Business Growth
As Tony and Sarah explain, “Our sales have grown steadily over the last two years, and we are currently sitting 19.6% over the sales target we set ourselves in our three – year business plan.
“We are extremely happy with our rate of growth and are expanding slowly and steadily to ensure our growth is sustainable. Our aim is to grow both sides of the business slowly, by 10% per year, and keep to our business model, which comprises of 70%trade / 30%retail, as we believe this is what works in our market.
“Our online presence has improved drastically within the last 12 months. Since advertising our website and the ability to use Afterpay for online orders, sales in this department have grown by 83% over last year. Hamilton has typically been an aging market, but we have noticed a big increase in young families moving down this way, and these consumers tend to be more online savvy.
“We anticipated a need for online shopping and are advertising our services accordingly. We use both Facebook and Instagram to promote instore activities, and have had a very positive response, with the majority of our posts engaging with between 900 and 1000 people.
“One of the biggest challenges we faced when we took over was the customer perception that we weren’t holding the right stock. The business was dwindling as people were heading out of town to other competitors instead of coming into their local first, as they had been turned away before.
“We have overturned this perception by visibly holding more stock. We have gotten to know our customers and hold our own unique shopper lead range, and never let a customer leave our store without exhausting every option. We do have space limitations, and it’s impossible for a small store to stock every item our customers require, but over time we keep re-iterating that we are part of a much larger buying group and we can order their required stock in.
“We have significantly grown the timber department, stocking larger quantities and a larger range. Our plumbing range has doubled over the last year and our hardware range has also doubled. Introducing the following ranges has also contributed to this growth:
– Carpet Clean Hire
– Petstock (namely layer pellets for poultry, dog/cat food, kitty litter, bird seed and hay, but we can provide anything upon request)
– Pool Testing and Chemicals
“Further to this, we have changed the layout of our store substantially since we took the business over, to increase the flow and fit the extra stock we are holding. Our counter has been moved to the centre of the store, and is in a “U shape”, to encourage our customers to gather around the hub and chat about their needs. The shape of the counter means that several customers can be served at once and it adds to the family atmosphere we aim to provide.
“The aisles have been changed so they run across the width of our store, to encourage browsing. This layout helps with accessibility as there is a clear thoroughfare from the front door to the counter for anyone that needs clear access, as well as from the back door to the counter for ramp access.
“We introduced a dedicated ‘Paint Hub’ with its’ own counter and computer as well as the paint tint machine, and colour display boards. This move was the most successful part of our layout change, as prior to the paint hub, a lot of people hadn’t realized that we had the ability to tint paint. Sales in the paint department grew by 23% in the following 6 months after we installed our paint hub.
“These visual changes are another reminder to our customers that the store is under new ownership and is an improved place to shop.”
BMM107 Marketing Principles
Guide to Doing Assessment 2 Part A External Analysis
Robyn Neeson GDP
1. Define the Industry
Before examining situation outside the business you must define the industry/industries in which the business operates
Examples
McDonalds is in the fast food restaurants
Holmesglen is in the tertiary education industry
Your assignment information will have an indication of the industry you will research, analyse and evaluate
The Components of a Company’s External Environment
2. External PESTEL Analysis
1.Research the PESTEL trends that will impact on the industry in the future
Sources of information
Australian Bureau of Statistics www.abs.gov.au
Consumer price index, Some social and demographic trends
Special reports
Other Government websites
www.dfat.gov.au, www.business.gov.au
Specific department sites
IBIS World Industry Reports via learning commons
EBSCO/ Marketline
Proquest industry profile
2.Analyse the trends
Some of the PESTEL or Global trends will have more effect on your industry than other trends
3. Write about the consequences/ effects of those trends on the industry
Analysis of Micro- Environment/ Industry
3. Industry Analysis
Porter’s five competitive forces
Industry conditions or structure
Drivers of industry change
Competitor analysis
Key Industry Success Factors
Conclusions: Overall Industry Attractiveness
Sources for information
IBISWorld industry report
Australian Bureau of Statistics www.abs.gov.au
EBCSO/ Marketline
Company annual report via company’s website ‘investor’ tab
Competitor annual report via competitor’s website ‘investor’ tab
Hoovers (if competitor is a large enough company)
Porter’s Five Forces Framework of Competition
Steps to Analyze Five Forces Framework
1.Assess strength of each of the 5 competitive forces. Are they High? Medium? Low?
¢Level of Rivalry among competitors within the industry
¢Level of competition from products that are substitutes to the industry
¢Level of competitive threat from potential entrants that are not currently in the industry
¢Bargaining power of suppliers to the industry and supplier-seller collaboration
¢Bargaining power of buyers and buyer-seller collaboration
2.Decide if the combined effect of all five competitive forces is:
- fierce, strong,
- normal/moderate, or
- weak
3.Write the combined effect of these forces on the attractiveness of the industry
How to Analyze Substitutes and New Entrants
Competition from Substitutes to the Industry
Substitutes to the industry (not competitors within the industry)
Eg train and buses are substitutes to the airlines
Decide the level of impact that substitutes will have on the industry (high, medium or low)
Threat of New Companies Entering the Industry (New Entrants)
These companies are not yet in the industry
Eg for the airline industry in Australia, new entrants are airlines not yet operating in the industry but are thinking of entering the market
Decide the level of threat of new entrants will have on the industry (high, medium or low)
If the possibility of many new companies entering the industry is high then the level of threat is high
If there are many barriers to enter the industry, then the threat of new entrants is low.
How to Analyze Industry Rivalry
Decide the level of rivalry/ competition within the industry (high, medium or low)
If the industry is concentrated with only a few large competitors, the level of rivalry/ competition is high
If the industry is mature, then the level of rivalry will be high
If the existing products and brands are very similar, level of rivalry is high
How to Analyze Buyer Power and Supplier Power
Power of Buyer
Analyse the importance of product to Buyers
Analyse how easy it is for the Buyers to switch from one competitor to another competitor in the Industry
Decide the level of power that buyers will have over the industry (high, medium or low)
In some industries such as supermarkets, the supermarkets have high level of power
Power of Suppliers to companies in the industry
Analyse how easy it is for companies within the industry to switch to another supplier
If there are only few large suppliers then the level of supplier power is high
If the cost of switching suppliers is high then suppliers will have the power
Decide the level of power that suppliers will have over the industry (high, medium or low)
Analyse the Industry
Is the industry:
Monopoly? Oligopoly? Fragmented or consolidated?
Going through rapid change or relatively stable?
What are the main causes for change in the industry?
At which stage in the industry life cycle is the industry?
How profitable is this industry?
Are there any strategic groups?
Companies following the same basic strategy
Write about these trends in the industry
What are the Key Industry Success Factors
See IBIS World Industry report
Write the major factors from the IBISWorld report and reference
Three Steps to Analyse Competitors
1.Research the company’s three major competitors
Sources of information
IBISWorld Industry report
Competitor’s annual reports (through competitor website, investor tab)
2.For each competitor, analyse:
What are the marketing strategies? Are these strategies effective?
What is the competitive advantage of the business?
What are its resources, strengths and weaknesses,
3.Write your conclusion about these competitors activities
Check
Review what you have written for your assignment against the Analysis Checklist which is in BrightSpace.
Review what you have written and ensure that you have referenced correctly both within your report and in the reference list.
Check that you have answered every part of every section in the required outline/structure on BrightSpace
Answer:
Introduction
Tony’s Super-Value Hardware Business Environment
Student’s Name
Institutional Affiliation
Course
Professor’s Name
Date
Tony’s Super-Value Hardware Business Environment
Introduction
Business environment is a vital aspect in any kind of a business. There are both the internal and external forces that embody the business environment(Fabu, 2018). The internal forces impact how to carry out the operations of the business and in managing the operation strengths for the success of the business. The internal forces that are considered include the financial resources, physical resources, human resources and natural resources. The external forces are factoring whose impact can be positive or negative that a business can’t control but can respond to. They include; political, economic, social, technological, legal and environmental technological, social, economic, competitive and environmental factors (Ghicajanu, 2019). These factors form the PESTLE analysis. Business environment is important in several ways. It plays a major role in identifying business opportunities, helps in improving the performance of the business, assists in strategic planning, helps the business to be in a position to cope with the changes taking place and also helps in tapping useful resources that are required for business purposes.
SWOT analysis
Tony’s super-value hardware is a Business that deals with trade and retail services. The Business success and growth has substantially grown due to its current business environment that has enhanced its operations. This has been greatly achieved through the business ability to control its internal and external factors through the SWOT analysis. SWOT evaluates the strengths, weaknesses, opportunities and threats of a business(Sarsby, 2016). The analysis allows the business to study its environment operations and be in a position to predict the changing trends and add them in the process of decision making. The business controls the internal forces by maximizing on its strengths and improving on the weaknesses. Tony’s super-value hardware has an innovative aspect on the products and the services they offer hence positive competitive advantage over its rivals. Its IT systems is helping the business in expansion, also created websites (Instagram and Facebook) are helping in advertising its services. At some point in the business the customer could give a poor perception that they are not selling the right stock. This has gotten the business to know its customers hence holding more and unique stocks. The market has grown where the business stocks larger quantities and the products are locally sold. Its geographical location makes it accessible for the customers.
The macro and microenvironments in the business and their impacts.
Tony’s super-value hardware business has both the macro and the microenvironments. The micro environments are the business immediate environments and they consist of the customers, competitors, suppliers, the market intermediaries and the general public (Lemanska, Sipa & Skibinki, 2018, p.498). The business has consistent local customers, and this because the business has advertised its services through the websites, Instagram and Facebook, through introduction of the online shopping, the paint hub that has attracted many and also increasing the stock that targets the customers to cater for most of the needs hence retaining them. Tony’s super-value hardware business is part of the Independent Rural Hardware Group and the holders of the title best small format hardware store. With this, it’s are the biggest supplier of stocks that reflects the needs of the people in the society. Also, can make and manufacture available products to its customers. There is competition in the Business market which is brough about by businesses selling the same product(Camilleri, 2018, p.55). One can make use of this and gain. In this case, Tony’s super-value hardware customers had at some point had started heading out to their competitors. This was because the customers perception was the business was not holding the right stock. Therefore, to keep them, they held more stock and a customer would even order what is needed and they could offer. Tony’s super-value hardware business satisfies the public.
The macro environment factors in Tony’s super-value hardware include; economic factors, technological factors, legal forces, physical factors, social forces, and demographic forces(Yang, Geng & Feng, 2020, p.1696). Generally, they are factors that the business can’t have control over. The environment affects the economy of the business, how it operates, how its plans strategies and makes decision. The political factor determines the far the government can go to influence the economy of a business. The environmental factors include all that determines the surrounding. The legal factors are laws that govern a business environment in a state or a country where there are policies that the business maintain for their own. The technological factors are more of innovations in the field of technology that may affect the business or industry’s operations. This includes the use of IT systems and creating websites used for advertisement of the services offered. The social factors survey the environment of the market and measure the determinants such as the population, cultural trends and demographic changes such as age distribution, geographical distribution and the population growth. The economic factor includes the interest rates and the growth of the economic pattern. This affects the business way of pricing their products hence affecting the customers power of purchasing the products and also affects the economic stability. These analysis help in reducing the business threats and strengthens the firm’s business. They help in realizing the environments that affect the business both directly and indirectly. Also, can be used for marketing plans, and in boosting customer relationships
Trends impact upon the business
Tony’s super-value hardware has adopted some trends which have impacted on the business. Trends such as digital transformation can impact on the business. This is through developing and adopting the use of technological digital innovations that is a important consideration for the competitive advantage of the business (Aktmbayeva et al. 2018). Artificial Intelligence is a trend that Tony’s super-value hardware should advance. It is used to strengthening the business efficiency, improving on the productivity and bettering the performance of the business. This will also benefit the business to obtain and maintain a competitive advantage. Use of mobile phones has the distinguished extend of any form of technology. This has grown globally and for the Business, advancing in the use of mobile internet will provide a greater access to the products available. Lifestyle change will have an effect on the employee, where it may increase the demands in the business culture and the in the employee’s benefits. Therefore, lack of the innovations could harbor the business from adopting the cost saving techniques that could benefit the business to be more profitable.
Understanding the lifestyle changes and trends allow the business to work effectively on its market campaigns (Karmaza, 2020)). Change in Lifestyle will enable the business realize is needed, what to purchase and what products they should sell to their consumers. Therefore, the changes should shift to satisfy the customers tastes for particular products and services. Information is the ground for decision making in any industry. Over the years the supply of data has increased and with this, the business can benefit by using the data to increase on the revenue by having a better understanding of the customer’s behaviors and reducing the cost of the products by removing inefficiencies and human prejudices. Tony’s super-value hardware business will require adaptability an agility to flow with this trend into their lifestyle and with that the busines will be in a position to prepare for the expected and the unexpected events, hence creating a successful and competitive business.
The target market of the Business.
Market targeting is very vital to any business owner. For one to market their products and services, it is important to first determine their primary market (Kohne 2019, p.78). Be aware of the population that is most likely to buy the products and services to be offered. The market should be sufficient in size, measure and reachable. By understanding your market, the business can easily promote the products and the services effectively to the customers. In identifying your market, the owner should identify the reasons as to why the customers want to buy their products, segmenting the business overall market to cater for the different need and wants of the customers and researching your market. Tony’s super-value hardware business considered several factors in determining its target market. This includes; geographic factors, psychographic, demographic and behavioral factors.
Geographically, Tony’s super-value hardware potential customers are in local market segment. The geographical location of a business is the most important to be considered. The busines is centrally located and therefore easily accessible by many people and also sells its products through after pays and online means. The business demographic market targets all customers of all ages, family status, occupation, location and genders therefore stocking different products that could fit each customer’s interest, needs and ability. The business current customers provide the owners with knowledge to predict potential customers and how to serve them. Behaviorally, products and services are bought for several reasons. Tony’s super-value hardware business owners (Tony and Sarah Casey) considered the reason such as cost, the brand, loyalty, frequency and the time of the year that a customer consumes the product. Psychographic factors influence the consumer’s decision to buy a product. Therefore, the business should offer their products and services based on the emotions, attitudes, values, behaviors, lifestyles and the beliefs of the target market. The business considers all the customers feelings and ensures they all feel a priority to the business. Identifying the target markets should be consistently checked.
The Business has systems used to regularly ask the customer’s feedback on how the business is doing, where they need changes, buy products online and order products they need offered (Curtis, 2018). This builds loyalty among the customers. A business can face both direct and indirect competition, and understanding your competitors will help benefit greatly. Competition has encouraged the business to be more innovative and be in a position to think differently in order to serve and keep its customers. This has boosted its proactiveness and this will lead to expansion of the business.
Conclusion
For a business to be successful, the owners should consider the factors affecting the business environment. This consists both the internal and the external environments and the micro and macroenvironments factors. They should aim at maximizing on the strength and improving on the weaknesses. Also increasing the utilization and usage of the available resources in the business. The business should consider its customers by allowing them to have a voice by saying where they require changes and how the business is doing. Also, their feelings, status, values, beliefs and abilities should be highly considered. Adapting to different market trends will create a healthy competitive aspect that would benefit the business largely. It will the business a room to be innovative and expand in size also in the quantity of the products and the services offered.
Referencing
Aktymbayeva, A. S., Koshkimbayeva, U. T., Zhakupova, A. A., Alimgaziyeva, N. K., & Amir, B. M. (2018). E-commerce evaluation and e business trends. International Journal of Innovative Technologies in Economy, (1 (13)).
Camilleri, M. A. (2018). The marketing environment. In Travel marketing, tourism economics and the airline product (pp. 51-68). Springer, Cham.
Curtis, K. R., & Allen, S. (2018). Target Market Identification and Data Collection Methods.
Fabus, M. (2018). Business Environment Analysis Based On The Global Competitiveness Index (Gci) And Doing Business (Db): Case Study Slovakia. Journal Of Security & Sustainability Issues, 7(4).
Ghicajanu, M. (2019). Analysis of factors from the external environment in changing business processes. In MATEC Web of Conferences (Vol. 290, p. 07008). EDP Sciences.
Karmaza, O. O. (2020). Trends Development In Digitalization Of International Business. Publishing House “Baltija Publishing”.
Kohne, A. (2019). Target Market. In Business Development (pp. 75-84). Springer Vieweg, Wiesbaden.
Lemańska-Majdzik, A., Sipa, M., & Skibiński, A. (2018). The impact of the external environment on the functioning of SMEs-results of own studies. In Economy, Finance and Business in Southeastern and Central Europe (pp. 497-512). Springer, Cham.
Sarsby, A. (2016). SWOT analysis. Lulu. com.
Yang, Q., Geng, R., & Feng, T. (2020). Does the configuration of macro‐and micro‐institutional environments affect the effectiveness of green supply chain integration?. Business Strategy and the Environment, 29(4), 1695-1713.
Final
by Writer Writer
Submission date: 04-Sep-2020 07:10PM (UTC+0530)
Submission ID: 1379621663 File name: Tony.docx (22.57K) Word count: 2026
Character count: 11425
Tony’s Super-V alue Hardware Business Environment
Student’s Name Institutional Affiliation Course
Professor’s N arne
Date
Tony’s Super-Value Hardware Business Environment
Introducti+in
Business environment is a vital aspect in any kind of a business. There are bnth the internal and external forces that embody the business environment(Fabu , 2018). The internal forces impact how to carry out the operations of the business and in managing the operation strengths for the success of the business. The internal forces that are considered include the financial resources, physical resources, human resources and natural resources. The external forces are factoring whose impact can be positive or negative that a business can’t control but
can respond to. They include; political, economic, sr›cial, technological, legal and en›’ironmental technological, social, economic, competitive and environmental factors (Ghicajanu, 2019). These factors form the PESTLE analysis. Business environment is important in several ways. lt plays a major role in identifying business opportunities, helps in improving the performance of the business, assists in strategic planning, helps the business to be in a position to cope with the changes taking place and also helps in tapping useful resources that are required for business
SW OT analysis
Tony’s super-value hardware is a Business that deals with trade and retail services. The Business success and growth has substantially grown due to its current business environment that has enhanced its operations. This has been greatl y achieved through the business abilit y to control its internal and external factors through the SWOT analysis. SWOT evaluates the strengths, weaknesses, opportunities and threats of a business(Sarsby, 2016). The analysis allows the business to st udy its environment operations and be in a position to predict the changing
trends and add theril in the prr›cess of decision making. The business controls the internal forces by maximizing on its strengths and improving on the weaknesses. Tony‘s super-value hardware has an innovative aspect on the prrxlucts and the services they offer hence positive competitive advantage over its riv’als. Its lT systems is helping the business in expansion, also created websites (1nstagrarn and Facebook) are helping in advertising its services. At some point in the business the customer could give a pr›nr perception that they are not selling the right stock. This has gotten the business to know its customers hence holding more and unique str›cks. The market has grown where the business stocks larger quantities and the products are lcicall y sold. Its geographical location makes it accessible for the customers.
The macro and microenvironments in the business and their irilpacts.
Tony’s super-value hardware business has bnth the macro and the microenvironments.
The micro environments are the business immediate environments and the y consist of the customers, competitors, suppliers, the market intermediaries and the general public (Lemanska, Sipa & Skibinki, 2018, p.498). The business has consistent local customers, and this because the business has advertised its services through the websites, lnstagram and Facebook, through introduction of the online shopping, the paint hub that has attracted many and also increasing the stock that targets the customers to cater for most of the needs hence retaining them. Tony’s
su per-value hardware business is part of the Independent Rural Hardware Group and the holders of the title best small format hardware store. With this, it’s are the biggest supplier of stocks that reflects the needs of the people in the society. Also, can make and manufacture available products to its customers. There is competition in the Business market which is brough about by businesses selling the same product(Camilleri, 2018, p.55). One can make use of this and gain. ln this case, Tony’s super-value hardware customers had at some point had started heading out to
their competitors. This was because the customers perception was the business was not holding the right stcick. Therefore, to keep t hem, they held more stock and a customer would even order what is needed and they could offer. Tony’s super-value hardware business satisfies the public.
The macro environment factors in Tony’s super-value hardware include; economic factors, technological factors, legal forces, physical factors, scicial forces, and demographic forces(Yang, Geng & Feng, 2020, p.1 696) . Generally, they are factors that the business can’t have control ox’er. The environment affects the economy of the business, how it operates, how its plans strategies and makes decision. The political factor determines the far the government can go to influence the economy of a business. The environmental factors include all that determines the surrounding. The legal factors are laws that govern a business environment in a state or a country where there are policies that the business maintain for their own. The technological factors are more of innovations in the field of technology that may affect the business or industry’s operations. This includes the use of lT systems and creating websites used for advertisement of the services offered. The social factors survey the environment of the market and measure the determinants such as the population, cultural trends and demographic changes such as age distribution, geographical distribution and the population growth. The economic factor includes the interest rates and the growth of the economic pattern. This affects the business way of pricing their products hence affecting the customers power of purchasing the prrxlucts
and also affects the economic stabilit y. These analysis help in reducing the business threats and
strengthens the firm’s business. They help in realizing the env’ironments that affect the business both directly and indirectly. Also, can be used for marketing plans, and in bc›nsting customer relationships
Trends impact upon the business
Tony’s super-value hardware has adopted some trends which have impacted on the business. Trends such as digital transformation can impact on the business. This is through developing and adopting the use of technological digital innovations that is a important consideration for the competitive advantage of the business (Aktmbayeva et al. 2018). Artificial Intelligence is a trend that Tony’s super-value hardware should advance. lt is used to strengthening the business efficienc y, improx’ing on the productivit y and bettering the performance of the business. This will also benefit the business to obtain and maintain a competitive advantage. Use of mobile phones has the distinguished extend of any form of technology. This has grown globally and for the Business, adx’ancing in the use of mobile internet will provide a greater access t o the products available. Lifestyle change will have an effect on the employee, where it may increase the demands in the business culture and the in the employee’s benefits. Therefore, lack of the innov’ations could harbor the business from adopting the cost saving techniques that could benefit the business to be more profitable.
Understanding the lifestyle changes and trends allow the business to work effectively on its market campaigns (Karmaza, 2020)). Change in Lifestyle will enable the business realize is needed, what to purchase and what products they should sell to their consumers. Therefore, the changes should shift to satisfy the customers tastes for particular products and services.
Information is the ground for decision making in any industry. Over the years the supply of data has increased and with this, the business can benefit by using the data to increase on the rev’enue by having a better understanding of the customer’s behaviors and reducing the cost of the products by removing inefficiencies and human prejudices. Tony’ s super-x’alue hardware business will require adaptabilit y an agilit y to flow with this trend into their lifestyle and with
that the busines will be in a position to prepare for the expected and the unexpected events, hence creating a successful and competitive business.
The target market of the Business.
Market targeting is x’ery vital to any business owner. For one to market their products and services, it is important to first determine their primary market (Kohne 2019, p.78). Be aware of the population that is most likely to bu y the products and services to be offered. The market should be sufficient in size, measure and reachable. By understanding your market, the business can easily promote the products and the services effectivel y to the customers. In identifying your market, the owner should identify the reasons as to why the customers want to bu y their products, segmenting the business overall market to cater for the different need and wants of the customers and researching your market. Tony’s super-value hardware business considered several factors in determining its target market. This includes; geographic factors, psychographic, demographic and behavioral factors.
Geographically, Tony’s super- value hardware potential customers are in local market segment. The geographical location of a business is the most important to be considered. The busines is centrally hated and therefore easily accessible by many people and also sells its products through after pays and online means. The business demographic market targets all customers of all ages, famil y status, occupation, location and genders therefore stocking different products that could fit each customer’s interest, needs and abilit y. The business current customers provide the owners with knowledge to predict potential customers and how to serve them. Behaviorally, products and services are bought for several reasons. Tony’s super-value
hardware business owners (Ton y and Sarah Case y) considered the reason such as cost, the brand, loyalt y, frequenc y and the time of the year that a customer consumes the product. Psychographic
factors influence the consumer’s decision to buy a product. Therefore, the business sho uld offer their products and services based on the emotions, attitudes, values, behaviors, lifestyles and the beliefs of the target market. The business considers all the customers feelings and ensures the y all feel a priorit y to the business. Identifying the target markets should be consistently checked.
The H usiness has systems used to regularly ask the customer’s feedback on how the business is doing, where they need changes, bu y products online and order products they need offered (Curtis, 2018). This builds loyalt y among the customers. A business can face both direct and indirect competition, and understanding your competitors will help benefit greatly.
Competition has encouraged the business to be more innovative and be in a position to think differently in order to serve and keep its customers. This has boosted its proactiveness and this will lead to expansion of the business.
Conclusion
For a business to be successful, the owners should consider the factors affecting the business environment. This consists both the internal and the external environrilents and the micro and macroenvironrnents factors. They should aim at maximizing on the strength and improx’ing on the weaknesses. Also increasing the utilization and usage of the available resources in the business. The business should consider its customers by allowing them to have a voice by saying where the y require changes and how the business is doing. Also, their feelings, status, values, beliefs and abilities should be highly considered. Adapting to different market trends will create a healthy competitive aspect that would benefit the business largely. lt will the business a rooril to be innovative and expand in size also in the quantit y of the products and the services offered.
Referencing
Akt ymbayeva, A. S., Koshkirnbayeva, U. T., Zhakupova, A. A., Alimgaziyeva, N. K., & Amir,
- M . (2018). E-commerce evaluation and e business trends. Intern‹itionol .lout ml ‹›{
Camilleri, M. A. (2018). The marketing environment. In Tru rl marketing, tout rem r‹ onomi‹s
‹ink the ‹airline f r‹›du‹ t (pp. 5 I -68). Springer, Cham.
Curtis, K. R., & Allen, S. (20 18). Target Market Identification and Data Collection Methods.
Fabus, M. (2018). Business Ens’ironment Anal ysis Based On The Global Competitiveness Index (Gci) And Doing Business (Db): Case Stud y Slovakia. .M › n i n¿s ‹ › ii o
Ghicajanu, M. (2019). Analysis of factors from the external environment in changing business processes. In MATES’ Wah r›{C’r›n{rrrn‹r.t (Vol. 290, p. 07008). EDP Sciences.
Karmaza, 0. 0. (2020) . Trends Development 1n Digitalization Of 1nternational Business. Puhli.thing Hotiee ”Bnliijn Publishing”.
Kohne, A. (20 19). Target Market. In Business Dr rloyment (pp. 75-84). Springer Vieweg, Wiesbaden.
Lemañska-Majdzik, A., Sipa, M., & Skibinski, A. (201S). The impact of the external env’ironment on the functioning of SMEs-results of own studies. In E‹ on‹›m v, Finon‹ e and Business in i‹›uthrx turn and C’entru 1 Em of e (pp. 497-51 2). Springer, C ham.
Sarsbj , A. (20 i 6). .s wnT i sis. Lulu . corn.
Yang, Q., Geng, R., & Feng, T. (2020). Does the configuration of macro-and micro-institutional
env’ironments affect the effectiveness of green supply chain integration’?. Bu.sinews
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