logo

PESTEL Analysis of the Chinese Economy : Report

   

Added on  2020-01-15

18 Pages5054 Words81 Views
STRATEGICMANAGEMENT
PESTEL Analysis of the Chinese Economy : Report_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1EXTERNAL ENVIRONMENT......................................................................................................1FIRM RESOURCES AND POTENTIAL.......................................................................................3VISION AND MISSION OF MORRISON.....................................................................................5SWOT ANALYSIS AND INTERNATIONAL STRATEGY........................................................6CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8APPENDIX......................................................................................................................................9
PESTEL Analysis of the Chinese Economy : Report_2
INTRODUCTIONOne of the most vital role played by Strategic Management in an organization is to be inconsonance with the goals and objectives determined by the top-level management of anycorporate. With the assistance of this kind of management practice, a company is assisted isoutlining the primary issues which may be faced while accomplishment of the objectives orgoals. In addition, all the functions are consolidated to make an effective deployment of theresources, and the internal system is structures as well as systematized in accordance to thestrategic plan so developed for achievement of the goals. Morrisons, one of the top mostsupermarket chains of Britain, is under a consideration to enter the Chinese market (Strategy –About Us, 2016). Hence, in pursuance to the same the present report studies the target market, byapplication of various models such as PESTLE, Value Chain and SWOT Analysis in order tounderstand the fundamentals of the market for development of business level strategies forMorrisons. TASK 1:EXTERNAL ENVIRONMENT1. PESTLE Analysis of the Chinese MarketPOLITICAL The Chinese market is supported by ahighly stable governmentRules and regulations have enactedpromote development in the retailsectorForeign Investment is welcomed andencouraged by the government (Hitt,Ireland and Hoskisson, 2012).ECONOMICThe economy of the nation has beenexperiencing a high growth rate inGDP. It shows potential to surpass theGDP of China. Some of the significantreasons are availability of skilled laborin abundance at a low labor cost,increasing exports, Urban growth andso on. The purchasing power of the public hasbeen showing increasing trends.However, high inflation rates andproperty prices poses the threat tohamper the growth rate. 1
PESTEL Analysis of the Chinese Economy : Report_3
SOCIALThere is a constant variation in thedemographics, in terms of frequentchanges in population growth, agedistributions and so on.The culture prevalent in the nation iscollectivist. TECHNOLOGYAdvanced information technologicaltools have to be employed by Morrisonin the market of China.Online selling of products can beundertaken which is convenient forboth buyers and sellers in the market.Updating of technology is possible asbusiness is financially strongComputer and online systems can beundertaken for serving customers inbetter manner.LEGALThis law is associated with payment oftaxes and duties.In the Chinese market e-commercelegislation have been introduced suchas intellectual property rightsprotection, taxes etc.ENVIRONMENTThis factor is associated with savingenvironment and reducing adverseimpact on surroundingsBy adopting online system pollutioncan be reduced as people do not have totravel to shops for purchasing products(Slack, 2015). Porter five forcesThreat of new entrants: In the market of retail threat of new entrants is high as regulatoryauthority of China encourages new investors. Further, large number of businesses prefer to investinto this market due to presence of opportunities. So, this is also one sort of challenge in themarket of China where Morrison is required to compete with other businesses.Bargaining power of buyer: It is high as buyers are having large number of options in case ifthey have to purchase any commodity. Further, they possess capability to dominate the marketwhere operations are being carried out. Due to high bargaining power of buyer Morrison isrequired to keep prices moderate so as to attract large number of customers.2
PESTEL Analysis of the Chinese Economy : Report_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Strategic Management Assignment - Morrison
|13
|3531
|72

Chinese Market External Environment Analysis
|13
|3130
|79

Business Strategy for Morrison's: PESTLE, SWOT, Porter's Five Forces, and Generic Strategies
|16
|4307
|443

Business Strategy for Morrison: PESTLE, SWOT and Porter's Five Analysis
|14
|4335
|201

Marketing Strategy of Retail Industry China
|13
|3983
|63

Comparative Analysis of Retail Market in China and UK for Coles Supermarket
|15
|2887
|170