This report analyzes the external factors that could impact Hollister's business expansion into India using a PEST analysis. It examines political, economic, social, and technological factors, highlighting both opportunities and challenges for the company.
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TABLE OF CONTENTS INTRODUCTION..........................................................................................................................3 MAIN BODY..................................................................................................................................3 PEST analysis of Hollister.........................................................................................................3 CONCLUSION...............................................................................................................................4 REFERENCES...............................................................................................................................5
INTRODUCTION PEST analysis is the analysis of external micro-environment that affects all firms which stands for political, economical, social and technological. These factors normally are beyond control of company (Kumar and et.al., 2014). This study is based onHollister. It is an American lifestyle clothing company. Firm is looking open new stores in India, so that they assess influences of external business environment factors as PEST analysis of the nations. MAIN BODY PEST analysis of Hollister Hollister is looking diversify their business in terms of open new store in India, so that they are assessed PEST analysis of selected nations for expanding their business. Company needs to determine the political, economic conditions, social and technological factors which affects in both positive and negative manners in the business expansion (Kaur, T. and et.al., 2014). Political Factors: It involves government regulations, taxation policy, trade restriction etc. which are highly impact on Hollister. The stable political culture is essential factors to attract the foreign direct investment (FDI). Corruption is another factor which increase costs of operations of Hollister and often affects foreign direct investment in India. This kind of factor affect in negative way on business expansion (Myrick and et.al., 2014). Government has regulated the laws such as employment laws, environment legislation, tax policy etc. that is necessary to determine all legislation by Hollister for expanding their business in India. The initiatives to government and public awareness are fighting challenges of corruption which help to company in relation to open new store in India. Economic Factors: It involves interest rate, inflation rate, corporate tax rate etc. that impact on business expansion of Hollister. India is the one of the top nation for exporting products such as transport machines, ready made garments, jewelry and so on. In this context, Hollister open new store in India easily and effectively. This factor positive impact on business expansion. The current corporate is 30% in India that impact on retail business which wants to expand their business in selected nation. If the inflation rate has been increased in India, so that consumer do not buy the high quality products. This effect negatively on expansion of business by Hollister in select
nation. The political environment is very badly effects on business operations as well as economic growth of nation. This impact on negatively on business who wants to expand their business in that country (Kumar and et.al., 2014). In this context, company does not contribute in economic growth like GDP (Gross Domestic Product). Social Factors: It includes population, consumers demand, taste and preferences, culture etc. that impact on business expansion of Hollister. In this context, the total population is 1.2 billion in India with consumers markets. Therefore, large market is great chance for multinational companies like Hollister. India is the one of the most attractive markets in many sectors, so that selected company easily open their stores in the nation. This factor positive impact on expansion of Hollister in the India. The rising of disposable income, consumers confidence, increasing net worth that help to increase growth of retail sector (Myrick and et.al., 2014). Therefore,Hollister easily open their new stores in the India. This factor impact positive in relation to make more profitable of business and their expansion in select nation. Highly consumer confidence for purchasing goods and services which help to increase sales of Hollister. This impact positively on the business expansion of retail company in the India. In this context, country offer low price labour forces so that company easily hire labour at affordable price while starting new store in India. Technological Factors: Selected country is one of the most technological advanced in the world.With the high information technology infrastructure, workforce, Hollister easily diversify their business in the India. Huge advanced technology is great opportunity to companies for establishing new business in the India (Kaur, T. and et.al., 2014). This factor positive impact on expansion of retail business like Hollister. Therefore, company requires adopt all technological advance which help to set up their business in India. Through technology advancement, company adopt online marketing, so that it help to increase consumers demand and sales of business. This help to increase revenue of business. CONCLUSION This report has summarised thatHollister wants to open new store in India, so that they have to determine all factors of environment by utilizing the PEST analysis. It can be concluded
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that company identify government regulations, populations growth, consumers confidence, technological advancement help to start the new store in the select country.
REFERENCES Books and Journals Kaur,T.andet.al.,2014.InsecticidalandgrowthinhibitorypotentialofStreptomyces hydrogenans DH16 on major pest of India, S podoptera litura (Fab.)(Lepidoptera: Noctuidae).BMC microbiology.14(1). p.227. Kumar, S. and et.al., 2014. Using district-level occurrences in MaxEnt for predicting the invasion potentialofanexoticinsectpestinIndia.ComputersandElectronicsin Agriculture.103.pp.55-62. Myrick, S. and et.al., 2014. Economic impact of classical biological control of papaya mealybug in India.Crop Protection.56.pp.82-86.