Economic Factors in PESTLE Analysis for Dunne's Stores Report

This report provides a comprehensive analysis of the economic and political factors influencing the performance of Dunne's Stores, a prominent international trade chain based in Ireland. It employs a PESTLE analysis to evaluate external factors, including interest rates, quality management, and strategic planning, and their impact on the company's success. The report delves into market segmentation strategies, such as geographical and firmographic segmentation, to understand how Dunne's Stores has adapted to competitive pressures and expanded its market reach. It also explores the impact of political events and government policies on the business. The analysis highlights the evolution of Dunne's Stores from a small shop to a leading supermarket in Ireland, emphasizing the role of strategic decisions, including the introduction of new commodities and effective management, in driving its growth and market share. The report also examines the competitive environment, including the threat of new entrants and the impact of competitor strategies. The report concludes by summarizing the key factors that have shaped Dunne's Stores' economic performance.

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STRATEGIC MANAGEMENT
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STRATEGIC MANAGEMENT
Strategic management involves the setting up major and clear organizational goals so as
to increase efficiency in the firm (Dudin, Prokofev, Fedorova, and Frygin, 2014, pp34). Strategic
planning aims at evaluating business goals, objectives and plans so as to focus on the company’s
success and efficiency. To achieve this, there are a series of steps or guidelines to follow. These
are management processes which involves defining the organizations strategy where managers
make a choice and determine what strategies to put into place.
PESTEL analysis is an acronym used to output the external factors affecting a company.
The individual letters in the word stand for the following; Political, Economic, Social,
Technological, Environmental and finally Legal. Pestle analysis is used by dealers to analyses
and monitor the exterior environmental issues affecting an organization which are used to detect
coercions and feebleness to be used in Swot analysis.
Dunne’s stores is an international trade chain that mainly sells a combination of various
things including foods, clothes and households’ wares and is based in Ireland. The store has
various branches in other countries such as England, Spain and it was also in Scotland. The main
commodities sold in the store are mostly groceries, clothing and textiles. The groceries serve as
the main commodity sold in internal regions of Ireland although few samples can be found in
other branches such as in Spain. In some stores, only textiles are the main commodity while in
others it may contain a supermarket.

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The stores were originally started in 1940s as a small-scale shop. The owner who was ben
Dunne felt that he needed to start his own store. Initially, Dunne's shops, originally called
Dunne’s company, dealt with clothes and fabric materials. Dunne discovered that he could
introduce apples and oranges to inspire buyers who would come for them during lunch breaks
(Lai et al 2015 pp 840). The addition of food commodities eventually resulted to the business
extending its stores where they fully operated as grocery stores. Dunne’s Stores focused on
escalating and increasing its territory
Economic factors affecting Dunne’s store in Ireland
Interest rates such as the discount given in Dunne’s stores played a major role in the rise
of Dunne’s stores as people felt motivated and stayed loyal to Dunne’s stores (Raupeliene and
Luke, 2017, pp. 1297). It is seen that these discounts made Dunne’s stores thrive as he was able
to remain at peak level all through to the 1980s.
Quality management
Quality management is an economic factor that saw the rise of Dunne’s stores (Hitt. and
Duane Ireland 2017, pp 6). The owner who managed his business at all times was a good
manager. A skill that led him to even open new branches countrywide and even to the outside
countries. It is seen that even after his death, the children were also good managers and were able
to maintain the at the top percent businesses in Ireland.
A diversity of ideas it is seen that Dunne’s one person who had a great business mind. He
figured out how he would maintain his customers and what products he had to add so as to attract

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more customers. It seen that new products attracted customers and this led to high consumer
rates (Kamunge, Njeru and Tirimba, 2014 pp 1).
A proper strategic planning oh how to expand and maintain his business. During the
expansion, it is seen that Dunne was not greedy in expanding his stores but he did it at a pace he
could afford to maintain without making any losses.
In the early years, it is seen that Dunne’s stores played an important role in Irelands economy as
it was the leading business in Ireland. In recent study, it is seen that Dunne’s stores commands
about 22.5% of the total market and is the leading supermarket in Ireland.
Table to explain the economic part.
1. Introduction of new commodities to exploit the available market. Dunne introduced
textiles in its business which was originally operated on groceries.
2. Quality management is a great economic factor. Dunne was a great manager and during
his time, he was able to keep the business at its peak.
3. Proper strategic planning saw the business expand and create many branches within
Ireland.
4. A diversity of ideas. It is seen that Dunne has a great business man as he figured out to
maintain his customers buy giving them discounts.
5. Introduction of competitors when the business was low is also an economic factor that

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really affected Dunne’s stores.
Government policies is also another factor that affected Dunne’s stores in Ireland where
the government began investigation what operations were being carried out in the business and
whether the business was paying the tax.
Political events like the kidnapping of Dunne which led to his death. The family
encountered a major blow which saw them change the management (Bouazza, Ardjouman and
Abada 2015 pp 101). Also, the events like the consecutive death of two sisters in the Dunne
family had huge implications. It is also noted that Dunne’s son had been arrested claiming that
he had cocaine (Robson 2015 pp 9). The family had to give a hefty fee to see their brother out
which also had huge implications in the business. Politicians also started coming. There were
also unusual operations in Ben Dunne's business practices, such as channeling of Dunne’s
business funds into the outside bank accounts of several Ireland's politicians, led to decline in the
business. This led to the government appointing officers to investigate the operations of the
business.
Table to explain the political part.

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1. The kidnapping of Dunne was politically based which led to his death.
2. Dunne’s son was arrested with a claim that he had cocaine. The family had to pay a
hefty fee which had a huge impact on the business.
3. Political figures started infiltrating the business which saw them channel a lot of
business money to their accounts for political support.
4. The government got involved where the appointed several authorized officers to
investigate the business activities.
After the death of some family members, the business was set to be run by their fourteen-
year-old sister had minimal knowledge.
Introduction of competitors. At a point where the business was poor, there was a rise of
new competitors who really thrived leaving Dunnes store behind (Hill 2017 pp78). The business
had to survive and had to improve so as to remain competitive. They used deeper discounts to
put the Dunne’s stores discount methodology to pressure.
Segmentation

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There exist different types of segmentation. Some of them are described below.
Market segmentation focuses on distributing your intended market in to amicable sets. It also
creates subsections of a market in relation to demographics, wants, urgencies, communal
benefits. Etc.
Dunne’s was able to open more stores country wide and also outside the country as he
had a good strategic plan in place. He introduced a variety of new goods like the textiles even in
the other outlets that had been opened (Jixin, Peng and Yajun 2015, pp 23). This is a strategy to
attract customers and it is seen that this bore him fruits. He was also able to determine what
commodities he could introduce to his store and also to the outside branches that would attract
more customers. He introduced this such as clothing and had the required outfits according to
their tradition.
He introduced his branches to areas that were densely populated – this is an instance of
geographical segmentation (Hill, Jones and Schilling, 2014 pp4). His main aim was to introduce
his business beyond Ireland thus creating a new target consumer group. Depending on weather
conditions, culture you can decide on what to advertise or even what commodity to add in your
store. In America, he presented a new stockpile set-up, implementing the American-style
suitability store concept. This is also an example of geographical segmentation.
Firmogratic segmentation. It is seen that Dunne introduced his business in areas where he
knew the growth rate was high. Outside the country, he introduced his branches to countries such
as Spain which he knew that they had a higher economic growth rate (Olah, Butchart, Symes,

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Guzmán, Cunningham, Brightsmith, and Heinsohn 2016, pp 205). If a country has higher
economic growth rate, more developments in terms of infrastructure and organizations are likely
to occur. This will provide a good environment for the business to thrive.
Treat of new entry in the competitive rivalry of Dunne’s store.
New management was assigned to the store which saw the business take another
direction. They added new furniture and new product mix leading to it moving to the mid
position in the market category. Within a period of time, it was able to level up with the others
and emerge among the giants in competition.
The new management was determined to improve the performance of the store and gave
it their all as the skills had been imparted to them. This is a factor that led to the rising of
Dunne’s stores back to its competitive level. The competitors felt threatened by the rise in the
business as they it had a lion share in the market which they are to reclaim.
Use of different types of segmentation to survive in the world of competition (Clark,
Flèche, Layard and Powdthavee 2016, pp 34). The new management set up a plan so as to thrive
in the world of competition and using various segmentation methods was a good idea that totally
worked.
Once there was retirement in management, the preceding manager ensured that the
remaining team was adequately taught and had the necessary qualities to lead the organization.

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With the continued improvement in the business operations, the business was able to set
up a new flagship store in the year 2007 in Dublin, Ireland (Castaño, Méndez, and Galindo 2015,
pp1496). This served as a large commercial development and helped root its new place in
business. Old building was removed and some renovated to continue expanding the business. To
date, Dunne’s store is among the top companies and the biggest grocery retailer in Ireland.

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