Strategic Analysis of Aeon Group

This assignment delves into a strategic analysis of the Aeon Group, a prominent retail company. It explores the group's market strategies, product offerings, and the influence of competitive forces on its growth and profitability. The analysis encompasses factors such as revenue, cost structure, gross profit, and the impact of external influences like political, social, technological, and environmental trends.

Business Organizations

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1. Information of the selected organization.....................................................................................3
TASK 2.................................................................................................................................................4
2. Business environment in selected organization...........................................................................4
TASK 3.................................................................................................................................................8
3. Analytical approach of selected organisation..............................................................................8
TASK 4.................................................................................................................................................9
4.Use and application of appropriate data and examples.................................................................9

INTRODUCTION
Business organisation is including the internal and external factors to analyse the growth rate
of the firm. In this report, firstly define the impact of the marketing strategies and the business
planning on the Aeon company which is the vast food retailer company located in Chiba, Japan.
Moreover, it has the great market value and effective impact on the current market trend.
Furthermore, PEST analysis is segregate the effectiveness of the issues like political, social,
economic, technological. Apart from that, analysing the background information of the Aeon firm in
the form of employee's information, market value of the firm, profit and growth rate of the firm etc.
In this report it is define that how AEON firm can expand itself in new market by consulting the
factors which give opportunities as well as risk.
TASK 1
1. Information of the selected organization
Business organization of the Aeon company is consisting to making the perfect marketing
strategy and apply them to achieve the set target. This company was set up in September
1926.Company become AEON Co. Ltd. on 21 August, 2001 and it is a holding company. The
company's headquarters are held in Chiba and Japan and it provides services such as footwear
speciality, department and discount stores, pharmacy facility etc. The company have a revenue of
5,685,303 million (FY 2012) And operating income was 190,999 million Yen in 2012, its net
income was 74,697 million Yen in 2012. There are 360,000+ employees were recorded in 2013.
This company also have there subsidiary such as AEON Retail, AEON Hokkaido Sunday, AEON
Kyushu, Maxvalu Chubu etc. It is mainly the retailer company of Japan and now onwards it has a
large network in all over the world. It has affiliated to the range of companies in supermarkets,
shopping malls, speciality stores. In this section of the basic background information it is clear that
this company having the vast brand value in the current market, which operates all the retail stores
in Japan and Malaysia (Brinckmann, Grichnik, Kapsa, 2010).
Furthermore, discussion of the Aeon group it includes the workforces, employee's
information, market and shares, stakeholders, shareholders or the team involved in it to reach those
goals. This company operates a chain of the department stores and selling the good range of the
quality products, foods and clothes. The main purpose of this company is to provide best service to
their customer's. The objective of that company is that their investment is very secure, financing
strategies are more effective. Moreover, they increase their portfolio value using perfect strategic,
proactive effective management (Bradfield, and et.al., 2005).
Furthermore, Aeon is the highest operating revenue generating located in the Japan, it

basically follows the simple rule that provide the better goods and services to their customer's.
Mainly 3 basic principles are followed by the firm is like people, peace, community. Aeon is the
vast corporate group whose production is effective for the customers and spreads the peace around
the world. They provide friendly environment to their employee's so they can give their effective
outcomes in the contrast of the gain and profit of the firm.
Aeon's business organizing strategies mainly focuses on the growth and the profit of the
firm. They provide their best goods and services to their customers so that they can attract more
customer towards their firm and increase the growth rate and profit accordingly. Based on
background information of the Aeon company is that; they have best employers and employees and
best quality product and material, effective production. This company must provide best product to
their customers on cost-effective rate with effective quality as well. This brand expanses 2400
products in the food, clothing, housewares, home-furnishing sectors. Aeon has deliver their best
quality product with the consistency at low prices.
Aeon is the largest retailer group stands in Japan and Malaysia, it is the organic market
across the world and continue grow at 15% more a year because of the goods and services of this
company which they provide to their customer's is more effective with the comparison of another
retailer group. Recently Aeon sells chocolate bearing the fair trade under a top value brand, their
main principle is to serve the customer first.
Moreover, it is the priority of the Aeon company to serve their best quality product to their
regular and new customer's and they follow the simple rule to improve the profit and gain, is that
provide person to person business. Aeon group have strong strategy to sustain in the current market
trend, is to establish the effective competitive position in the current market trend and achieving the
long-term goal in a very effective and proper way. Aeon is the international retail group so per that
they have a great market reputation across the world and their goal is to operate “international-scale
retailing group” not only in Japan in fact all over the world.
TASK 2
2. Business environment in selected organization Business environment includes internal and external factors that affect company's working
condition internally and externally. It also affects the goodwill of firm in the market. It also
includes effects like production, quality of the product, and many more. Economy can
directly affect the growth of the organization.l(Ruff, 2006). Social factor: In this, development of the firm gets affected by factors like population

growth, age distribution, culture effect and customer taste and preferences etc. Early time of
life intake custom, changes in diet system due high consuming system of fast food because
people are busy in jobs and there working schedules or less in consumption time make an
affect as social factor of Aeon company in Japonia. These factors can directly affect the
market understanding and type of quality products that customers want from retailer firm,
Aeon in the form of clothes, food and more. Technological factor: Per the recent technological changes, market value or quality of
production in firm get affected to a high extent. To overcome this kind of problems,
management should follow the new ways of technology and produce high quality products
and need to manage it in an effective manner. They also compete with other retailers so that
they will have to make sure to select perfect target market which is well suitable for serving
their products and services and also, for finding new ways to communicate with customers.
(Czinkota, Liesch, and Steen, 2010. Aeon is the main retailer company sustaining in the
recent market trend and its production rate and quality of the product is very high in
compare with the other organizations. PEST analysis is mainly required for the growth of
the firm in which company follows the several steps to overcome the effect of the political,
economic, social, technological factors. more. In Aeon, political factors play a vital role in
the growth of firm and working practices of employees. Their current policy affects the
market value of the firm. Management of firm should always be ready to respond towards
these types of changes in the government policies, rules and regulations, etc. Economical factor: This factor includes the economic growth of firm along with interest
rate, inflation and exchange rate, etc. All these factors affect the market rate of firm and it
will include the affect on profit and gain of the production. This section includes various
economical effects like production, quality of the product, and many more. Economy can
directly affect the growth of the organizational, and all such factors is depends on Japan
economy. (Ruff, 2006)
 Political factors: Political factors can directly affect management of firm in the way of
product quality, management issues, and many more. This factor includes government
policies, rules and regulation, overseas market, tax policy, environmental law and many
more. In Aeon, political factors play a vital role in the growth of firm and working practices
of employees. Their current policy affects the market value of the firm. Management of firm
should always be ready to respond towards these types of changes in the government
policies, rules and regulations, etc. So that all the political factor related to Japan may affect
the growth of Aeon firm.

TASK 3
3. Analytical approach of selected organisation
In this analysis, the ability to identify the strengths and weaknesses of the company's
production or goods and services and then make the recommendation to improve the weaknesses in
a proper way. Moreover, in this analysis organisation must find out the great opportunities for their
firm and find the threats where improvement is needed. These factors are very important for the
growth of the organisation (Mukwada, and Manatsa, 2017). SWOT analysis is used to identify all
the factors that affect the growth of the firm. Aeon is the Japan's largest retail group in terms of
sales and having the strongest target zones of urban middle class and the upper-class householders.
SWOT analysis on the Aeon company is given below: Strength: Aeon is the second largest retailer group of the Japan and very effective strength of
this company is that having a strong brand name which provide the boost to the growth of
the firm. This company have top ranking among worldwide retail stores and having good
market reputation in Japan and china. Aeon company having good number of workforces in
compare with the other retail organisations. Weaknesses: In this sector of weakness company's worldwide presence is very low in
compare with the global leaders. This company's growth and reputation also affected by its
competitors in various sections like economy, production, quality, goods and services and
many more. Opportunities: There are various opportunities which Aeon group have in terms of high
demanding of their products and services, in terms of selling, other sectors of this company
which are in various cities of china and worldwide. Moreover, Aeon company can circulate
the effective quality product among their regular customer so that they can encourage the
new customers towards their firm to improve the growth rate of the organisation.
 Threats: Aeon group having various type of threats including the increasing price of the raw
materials and these prices can directly affect the production of the company and the growth
rate as well. They also have large amount of competition worldwide and domestic as well so
this can also affect their goods or services and the customer rate also decreases. Government
can directly affect the business of the organisation by changing the rules and regulations of
the market trend, which affect the production and quality of product in indirect way.

Analytical approach includes the analysis to breaking a problem into different sections and then
it can be solved individually by the each member of the workforce. In an analytical approach of the
firm there is simple way to reduce the problem by applying the effective method on it like
identifying the key factors which are responsible to that particular problem, finding the interest of
each member of the team, evaluate the options and many more (Pandya, and Pandya 2017).
SWOT analysis is the very effective analysis to understand the analytical approach of the
Aeon group in several sectors like strength, weaknesses, opportunities and threats. Company's profit
and gain are totally depending on these factors. To overcome the weakness management has to
improve their quality of products, improving the production rate, supply best services and many
more.
TASK 4
4.Use and application of appropriate data and examples
Aeon company has the great reputation in the current market trend and have the effective
revenue in the year 2015 to compare with the year 2014. In the year 2014 company have the
revenue cost 3705 MYR and in the year 2015 revenue cost increase gradually and the final cost is
3835 MYR. Sales of the product will be increases accordingly and that will affect the growth of the
organisation. Net income is also a very common factor of the data analysis of company’s gain and
profit, Net income is gradually down in the year of 2015 with the compare of year 2014.
In the year 2014 net income of the Aeon company is 212 MYR and in year 2015 the net
income is reducing effectively and final income is 132 MYR. This reduction can be affect the
quality of the production and services as well, to overcome this problem company will do the more
effective approach in the way of improving the quality of products, change the selection process of
raw material, way of providing goods and services. Gross profit of the Aeon company is gradually
increases since year 2011 and it will associate to the total making and selling product of the
company or the cost which is provided to the services. In Aeon there active members were
increased by 2.09 million to 31.85 million and this firm handle total card in shopping volume of
JPY 3.561594 trillion. In Aeon the card of shopping will be increased up 1.23 million and there
credit card will be expand by 420,000. In Thailand it opened 13 marketing offices newly and there
overseas business in Thailand and Malaysia will be increased by 18.2% yoy to JPY62.035 billion.
Strategic analysis is used to explore the long-term problems and various opportunities for
the target company, it is the basic process to improve the analytical growth of the company's
production and quality services. This process provides an essential input to corporate planning and
evolution. Strategic analysis consists the various factor which affect the growth rate of the firm in

the form of long term market and production prediction, factors of profitability, product growth,
consumption prediction and many more.
Strategic analysis includes the factor like market strategies of the companies, growth,
structure, services, structure. Product strategic analysis includes the various factors like product
quality, product range, profitability, pricing, service quality and many more. Various industry factors
that affect the growth of the organisation in the form of competitor’s growth, costs, capacity, capital
structure, investment, margins, integration, marketing costs, marketing penetration etc. These
factors can directly affect the production rate and the sales, and quality of the product of the food
sector, clothes and other retail stores of the Aeon company. Aeon group's production and goods or
services can directly have affected by the competitor's growth rate their production rate, quality of
the product, effective goods and services and many more. If the competitor's production and growth
rate is very high so because of that the revenue, cost of revenue and gross profit of the firm is
directly affected and reduced at the high rate because of sales complexion and decreasing the
production rate.
CONCLUSION
As per the above discussion about the business organization of the Aeon group, here it can
be concluded the basic information about the selected organisation Aeon group. In this case, the
production rate, quality of the products, profit and gain of the firm and goods and services of the
organisation is included. In the business environment of the fir, discussed the several factors like
political, social, technological and environmental etc. SWOT analysis is main factor which is used
to discuss about analytical approach of the firm. In the data analysis of the Aeon group, includes the
factors like revenue, revenue cost, gross profit and many more for the study of strategic analysis of
the firm. Mukwada, G. and Manatsa, D., 2017.