Globalization Assignment: Beauty and Fitness Centre

Added on - 28 May 2020

  • 7

    pages

  • 1990

    words

  • 0

    views

  • 0

    downloads

Showing pages 1 to 3 of 7 pages
Running Head: GlobalisationBEAUTY AND FITNESS CENTREContextual Factor ReportGlobalizationName Of Student[Pick the date]Submitted To
Globalisation1ContentsIntroduction...........................................................................................................................................2Beauty and wellness Industry in Australia.............................................................................................2Internal Organisational Factors..............................................................................................................2External Organisational Factors.............................................................................................................2Business Idea.........................................................................................................................................3Globalisation.........................................................................................................................................3Challenges of globalisation....................................................................................................................3Benefits of globalisation........................................................................................................................4Conclusion.............................................................................................................................................4Bibliography..........................................................................................................................................5
Globalisation2IntroductionContextual Factors are those factors which affect organisations differently based on theircharacteristics. Globalisation has been changing the way countries do business since many years.Australia joined the wave of globalisation in 80’s until then Australia was practising mercantilism.But mercantilism gave rise to unemployment and high inflation, it was then that Australia opened itsdoors for global companies. This report will discuss about impact of globalisation on service industryin Australia and how as a contextual factor does globalisation affect the business strategy of a beautyand fitness business in Australia. As awareness of benefits of maintaining a healthy lifestyle isincreasing, Beauty and wellness industry has become popular choice for investment by entrepreneurs.Fitness industry includes everything from gyms and spas to beauty salons and malegrooming[CITATION Bus14 \l 16393 ].Beauty and wellness Industry in AustraliaWellness market of Australia has attracted lot of investment recently and has attracted lot ofinnovations. In 2014, IBISworld report stated that in next five years Australian fitness industry’srevenues are expected to reach $ 3.4 Billion which includes personal training and weight Lossservices[CITATION Bus14 \l 16393 ]. Fitness and beauty industry has also seen a surge in employment,25% increase in fitness instructors and 25% increase in beauty therapists since 2011[ CITATIONThe17 \l 16393 ].Internal Organisational FactorsInternal business environment comprises of factors which are within the control of company andwhich impact the strategy it follows for success[ CITATION Pes15 \l 16393 ].Following are someinternal Factors and their effects on business:Well Trained Staff: Labour in this industry is the major determinant of cost. Labourcomprises of personal trainers, instructors, customer service executives and marketingprofessionals. Beauty and fitness businesses are heavily reliant on labour which is the mainreason of growing trend of unstaffed gym. These gyms operate 24 hours and saves wages aswell. Well trained staff is key driver of a gym’s success as demand for personal trainer is alsoon a high[ CITATION Fit16 \l 16393 ].Technologically Advanced Equipment: It’s important to keep the latest training equipment.Although innovation in this industry is limited as exercises like cardio and weights generallyare done by tried and tested methods. Innovations are limited to CrossFit equipment only.Location: Areas wide outdoor spaces and pleasant weather see lower demand for gymfacilities on the other hand more commercial regions tend to use private fitness facilitiesmore. Hence, fitness centres are mostly located in metropolitan areas and suburban shoppingareas. So the location of Beauty and fitness centre plays important role in determining itssuccess.
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Unlock This Document