Liberty Department Store: Global Business Management Strategies Report

This report offers a comprehensive analysis of Liberty Department Store's global business management strategies. It begins with an introduction to the company and its operations, followed by an examination of the significance of marketing in attracting consumers and building brand image. The report delves into the societal marketing concept and its application to Liberty. It then presents a PESTLE analysis, exploring the political, economic, social, technological, environmental, and legal factors influencing the company's global business environment. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report also applies Porter's Five Forces model to assess the competitive landscape, including the bargaining power of suppliers and customers, the intensity of rivalry, and the threats of substitutes and new entrants. The report concludes with recommendations for the department store, focusing on advertising, marketing mix, and consumer focus. References supporting the analysis are also included.

Running head: Global business management
Global business management

Global business management
Table of Contents
Introduction.................................................................................................................................................3
Significance of marketing............................................................................................................................3
Societal marketing concept.........................................................................................................................4
Pestle analysis.............................................................................................................................................4
SWOT analysis.............................................................................................................................................5
Porter five forces analysis............................................................................................................................6
Porter five force analysis.............................................................................................................................7
Recommendations.......................................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8
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Global business management
Introduction
The report outlines about the trading activities and operations of the Liberty (department
store}. It explains that how the firm is achieving its long-term vision and mission of the company
by implementing effective and unique strategies within the organization. The SWOT analysis,
Pestle analysis, and porter five model are done by the company to evaluate and identify the
competitive advantages across the world. Along with this, the report explains that how the
Liberty (Department course) is overcoming the competitors and other marketing risks which
exist in the global market.
Liberty is a department store on great Marlborough street in the West end of London. The
liberty sells luxury and unique goods including men’s, children fashion, women’s cosmetics and
fragrances, accessories, furniture, jewelry, gifts, and stationery. It is known for its graphics and
floral prints. It is a retail industry which was founded in 1875 with its headquarter is located in
London, United Kingdom. In today’s era, the department store is increasing its profit and
revenue across the world. Arthur Lasenby Liberty is the founder of the department store. The
company is expanding and flourishing its trading activities and operations of the liberty with
maintaining sustainability within the organization.
Significance of marketing
Marketing plays a vital and integral role to attract more consumers in the market globally.
Marketing is the effective and dynamic tool to increase and expand to revenue and profit of the
company. Along with this, marketing plays a crucial role in establishing a reciprocal and cordial
relationship with customers (Grönroos and Ravald, 2011). The marketing takes cares of the
brand image across the world. None of the company can survive its business activities and operations
across the world without effective and unique marketing in the global market. The marketers help to
evaluate and analyze the needs, requirements, and expectation of the consumers. It also helps to create
a competitive environment in the market by using marketing strategies around the world (Labrecque
and Milne, 2012).
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Global business management
Societal marketing concept
It is the important concept of marketing. It is the concept which focuses and monitors on
the consumer's needs, requirements and expectations to fulfill the long-term goals and objectives
of the company. It provides benefits to the society also. Under societal marketing, marketers
work for the welfare of the society (Dibb and Carrigan, 2013). This marketing focuses on the
behavior of the customers in the global market. It provides satisfaction to the people by
providing unique and effective products to them. This marketing plays a vital role in Liberty
(department store).
Pestle analysis
Pestle analysis affects the business activities and operations of the organization. PESTLE
analysis is related to the external environment of the firm. The pestle analysis encompasses
political, economic, social, technological, environmental and legal factors. The pestle analysis of
liberty (department store) has been discussed below (Gupta, 2013).
Political factors: The political factors include the rules, regulations, and policies of the
government in which the organization has been working. Further, various government policies,
import policies, and globalization affect the success and growth of the company. Thus, the firm
should analyze these factors to overcome on the competitors in the global market (Lee, Kim and
Park, 2012).
Economic factors: The economic factors include the exchange rate, interest rate, inflation rate
and GDP influence the liberty (department store). These factors must be evaluated and analyzed
by the company while conducting business globally (Yüksel, 2012).
Socio-cultural factors: These factors consist culture, values, customs, and behavior of the
people. These factors influence the trading activities and operations adversely. The firm must
resolve these issues and challenges to overcome on the competitors around the world (Lee, Kim
and Park, 2012).
Technological factors: Innovation and technology play an integral role to beat the competitors
across the world. Thus, liberty (department store) should measure these factors to build and
develop a good image in the global market.
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Global business management
Environmental factors: These factors consist several global environmental laws, rules, weather,
climate changes and other global standards. These factors must be taken into consideration while
starting new business globally (Lee, Kim and Park, 2012).
Legal factors: Liberty (department store) should focus on the legal factors to run the business
activities smoothly in the global market. These factors influence the activities and operations of
the company negatively. Now it can be said that macro environment affects the business of the
company. Thus, the company should measure and analyze the macro environment to gain
various competitive benefits in the world (Sohel, Rahman, and Uddin, 2014).
SWOT analysis
SWOT analysis is essential to measure and identify the strengths, weaknesses,
opportunities, and threats of the company. The SWOT analysis stands for strengths, weaknesses,
opportunities, and threats. This analysis helps to measure and evaluates the plans, policies, and
strategies of the competitors in the world. SWOT analysis has been discussed below (Al-Refaie
et al, 2016).
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Global business management
Strengths Weaknesses
 The department store provides unique
and excellent quality of goods and
cosmetics products to the people.
 The product ensures the good quality
and safety.
 It serves the diverse market in the
United Kingdom.
 The department store needs to
dependent on the suppliers.
 Further, competitors exist in the global
market.
 Labor cost is very high.
Opportunities Threats
 Global market available in the United
Kingdom.
 Liberty (department store) is rendering
attractive fashion and cosmetics
products and goods to the women as
well men’s to beat the competitors in
the UK market.
 The emergence of new and innovative
business models.
 Recession trends also affect the trading
activities and operations of the firm.
 Seasonal business.
Porter five forces analysis
It is one of the significant models to analyze and evaluate the competitive position of the
competitors in the world. This model is developed by the Michael porter to hit the competitors
around the world. This analysis is also important to understand and evaluate the many different
risk and rewards of the industry. The porter five forces model has been discussed below (E.
Dobbs, 2014).
Bargaining power of suppliers: Suppliers are essential to supply and deliver the cosmetics and
fashion products of the department store across the world. Therefore, the firm must analyze and
evaluate the bargaining power of suppliers to gain the various competitive advantages in the
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Global business management
market. The liberty (department store) has many suppliers in the UK and their bargaining power
is low (Wymer, 2011).
Bargaining power of customers: Customers influence the prices of the cosmetics and fashion
products. The buying behavior of the consumers also affects the trading activities and operations
of the company. Thus, the firm must focus on the bargaining power of suppliers in the global
market (Lee, Kim and Park, 2012).
The intensity of the existing rivalry: The government rules, regulations, and policies directly
affect the competition within the industry. It is the major concern for the company to increase the
revenue and profit of the company.
Threats of substitutes: The threat of substitute is another big challenge for the company to
attain long-term profit and revenue within the organization. To overcome this challenge, the
department store must focus on the plans and policies of the competitors around the world. It is
one of the significant concerns in the organization. It must be controlled and managed by the
firm. Along with this, the company should focus on the products and services of the competitors
(David, 2011).
Threats of new competitors: It is an important threat that should be controlled and managed by
the firm to accomplish the goals and objectives of the firm. There are various competitors exist
in the global market. Thus, the firm evaluates and measures the policies and strategies of the
competitors across the world. By using porter five forces model, the company is able to identify
and measure the performance and products of the competitors in the world (Dälken, 2014).
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Porter five force analysis
(Source: https://www.kazmaier-translations.com/business-strategy/porter-s-five-forces/)
Recommendations
Now it is recommended that the department store should focus on the advertising and
promotional strategies to increase the sale of the cosmetics and fashion products across the
world. The firm must focus on the marketing mix strategies to differentiate its products and
prices from the competitor products and prices. It will help to generate more revenue and profit
within the organization. Further, the company must focus on the needs, requirements, and
expectations of the consumers in the world. Further, the company should focus on the middle-
class people to increase the number of customers in the market.
Conclusion
On the above mentioned information, it has been analyzed that Liberty is one of the
biggest department stores around the world. They must focus on the marketing activities and
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strategies to reduce the key challenges in the market. The company uses porter five forces model,
SWOT analysis, and Pestle analysis to beat the competitors in the market. The company is using
dynamic leadership styles to hit the competitors across the world. The Liberty (department store)
is evaluating and analyzing the plans, policies, and strategies of the competitors across the world
in order to determine long term goals and objectives of the company.
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References
Al-Refaie, A., Sy, E., Rawabdeh, I. and Alaween, W., 2016. Integration of SWOT and ANP for
effective strategic planning in the cosmetic industry. Advances in Production Engineering &
Management, 11(1), p.49.
Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical examination
concerning the relevance for today’s business (Bachelor's thesis, University of Twente).
David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Dibb, S. and Carrigan, M., 2013. Social marketing transformed: Kotler, Polonsky and Hastings
reflect on social marketing in a period of social change. European Journal of Marketing, 47(9),
pp.1376-1398.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Grönroos, C. and Ravald, A., 2011. Service as business logic: implications for value creation and
marketing. Journal of Service Management, 22(1), pp.5-22.
Gupta, A., 2013. Environmental and pest analysis: An approach to external business
environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), pp.13-17.
Labrecque, L.I. and Milne, G.R., 2012. Exciting red and competent blue: the importance of color
in marketing. Journal of the Academy of Marketing Science, 40(5), pp.711-727.
Lee, H., Kim, M.S. and Park, Y., 2012. An analytic network process approach to
operationalization of five forces model. Applied Mathematical Modelling, 36(4), pp.1783-1795.
Sohel, S.M., Rahman, A.M.A. and Uddin, M.A., 2014. Competitive profile matrix (CPM) as a
competitors’ analysis tool: A theoretical perspective. International Journal of Human Potential
Development, 3(1), pp.40-47.
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Wymer, W., 2011. Developing more effective social marketing strategies. Journal of Social
Marketing, 1(1), pp.17-31.
Yüksel, İ., 2012. Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), p.52.
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