Business Essentials Assignment - (Doc)
Added on 2020-10-05
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BUSINESSESSENTIALS
Table of ContentsINTRODUCTION...........................................................................................................................3Background of the company............................................................................................................3PESTEL analyses.............................................................................................................................4Analyse the market competitiveness................................................................................................5Marketing Analyses ........................................................................................................................6Human resource management..........................................................................................................7Recommendations for next 2-5 years..............................................................................................8CONCLUSION................................................................................................................................9
INTRODUCTIONBusiness is the sum total of activities which takes place in internal and externalenvironment of the business. It has become an essential part of everyday which is concerned withproduction and distribution of goods and services. Organisation undertaken in this report is TKMaxx which is a retail industry in UK (Androniceanu, 2017). This report will explain thebackground of the company. It will describe the PESTLE analyses and marketingcompetitiveness. This will also illustrate the marketing mix which will include the 7P's andhuman resource management of the company. And lastly, it will also conclude therecommendations for the organisation for next few years.Background of the companyTK MAXX is a part of TJX families and companies which was launched in UK in 1994.It is a retail company and deals in clothing, footwear, bedding and domestics, furniture andgiftware. It is the first company in UK to open an international retail store. It has 515 stores inentire Europe and the number of employees working in UK is 1335. The total turnover generatedby the company for last year was £226.7 million, £13.9 million profits. . Revenues at TK Maxx’sUK owner increased by 10.3%, but profits dived by 35%, reflecting rising labour costs and costsrelated to its expansion strategy in 2017 (TK MAXX, 2019). PESTEL analysesIt is a tool used by marketers to monitor macro-environment factors that can effect anorganisations performance (Bell, Bryman and Harley, 2018). This tool is extremely helpful instarting a new business or while entertaining a foreign market. PESTEL analysis includesPolitical, Economic, Social, Technological, legal and environmental factors.Political Factors: These factors includes policies of government that directly affect thecompany and that Includes changes in Tariffs restriction, Trade restriction, politicalstability and taxation policies which will affect the retail industries. Due to whichcompanies have to increase prices of the product which affects companies revenue. AsT.K Maxx is one of the old players in the retailer industry so it has experienced certainchanges in political laws and regulations (Carroll and Buchholtz, 2014). But the future
is not predictable as relationship between countries may become the reason for changesin laws.Economic environment: The overall economic situation of a country directly affect theperformance of an industry. Issue like recession and economic downswing have affectedthe revenue of retail merchants (Chang, 2016). During recession time company had toreduce its work force which affected the performance of the company. T.K Maxx arerecycling their store waste and are fulling their duty towards environment. Throughwhich they are fulfilling their corporate social responsibility and also creating a strongbrand image in the mind of customers.Social environment: Society and culture is an important factor that must be givenimportance by business in order to retain in the market (De Mauro, Greco and Grimaldi,2016). T.K Maxx provides these fashionable product in affordable pricing to thecustomers in order to attract them and retain them by providing high quality products.Technological environment: Technology can be useful while improving the quality andreducing the price of the products. T.K Maxx does have its own manufacturing unit butstill technology plays an important role in the revenue generation process. Use of onlinefacility and e commerce sites will benefit company in order to create brand awarenessand for attracting large number of customers (Evans, 2015).Environment factors: In order to keep the environment clean in every store of theorganisation. Cleaners are being provided by the Initial company of UK. They alsoprovide training to the cleaners to maintain tidiness and also train them about recyclingwaste.Legal environment: This includes factors like wage system, changes in law and changesin trade policies which affect the companies performance in the industry (Iansiti andLakhani, 2014). Company will insure that it works accordingly to the legal regulationsof government. In order to trade successfully and ethically.Analyse the market competitivenessA competitive market is one in which greater amount of producers compete with eachother to fulfil the wants and needs of huge number of customers (Jeston, 2014). This can befurther explained for the TK MAXX company through value chain analyses model which isdiscussed below :
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