External Environment Analysis and Recommendations for JB HI-FI

This report analyzes the external environment of JB HI-FI, an Australian retail store specializing in electronic goods. It examines the impact of socio-cultural, economic, political, and technological factors on the company's operations. The report discusses the company's purpose, mission, and profit orientation, as well as the general external environment. It delves into the specific external environment of JB HI-FI, focusing on how these factors influence its business. The report also includes an analysis of the 2016 election's impact on the retail industry and addresses CSR and ethical considerations. Recommendations and conclusions are provided, along with a comprehensive reference list.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Introduction …………………………………………………………………………….. 1
2. Organization Purpose, Mission, profit Organization …………………………………... 2
2.1. Description of the Purpose of JB HI-FI …………………………………………… 3
2.2. Mission of JB HI-FI ………………………………………………………………... 3
2.3. Profit Orientation Analysis for JB HI-FI ………………………………………….. 4
3. General External Environment ………………………………………………………… 5
3.1. External Environment of JB HI-FI .......................................................................…... 5
3.2. Impact of X factor on JB HI-FI in 2016/2017 …………………………………... 6
4. CSR and Ethics ……………………………………………………………………….... 7
5. Recommendation and Conclusion ……………………………………………………. 8
6. Reference List ………………………………………………………………………….. 9

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General External Environment
An organization’s external environment refers to all the forces, factors, situations and
conditions outside the organizational boundary that has significant potential to alter the operation
of the organization in the market. This external environment is again divided into two by
Robbins. They are general external environment and specific external environment. The former
according to Robbins et al. (2016, p. 34) “consist of the broad socio-cultural, technological,
economic, political/legal and global conditions in the society in which the organization
operates.” He further explained that modification in general environment impacts organization’s
specific environment that is comprised of groups, individuals or organizations directly related.
Furthermore, the general external environment is far greater for the organization to be controlled
and organization have little influence on the general external environment.
External environment of JB HI-FI
JB Hi-Fi is an Australian retail store operating from 2002. It has now extended itself
around Australia and has entered in online market. JB Hi-Fi deals with the electronic goods.
Socio-cultural – As the company deals only with the electronic products in both their brick and
wall and online stores around Australia, it is easy for them to circulate their products.
Technology has entered into the core of Australian society and culture. Their everyday life is
highly dependent on the technology. Australians from their very childhood is accustomed with
the electronic devices and use some kind of product (Adeoye and Elegunde 2012, p. 59).
Moreover, Australia is a hub for international students and the number is growing over time.
This plays positive factor for the organization.

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Economic – Australia has an overall stable economic condition. The current GDP as per 2016’s
report is 1.205 trillion USD. It reflects the capability of Australians for availing the products
offered by the company.
Political – Current political condition of Australia is stable. Their political and legal policies
provide advantages to the business organizations of all kind. Australia is enjoying industrial burst
due to their favorable political condition and legal policies. However, the upcoming election is
likely to affect the retail industry. As evidenced in 2010 and 2013, the retail industry underwent
turmoil in the ALP government. It left the industry in a state of limbo.
Technological – As discussed earlier, Australia has attained technological advancement. It is
now an integral part of every Australian’s social life. Population of all age group takes complete
advantage of the technology. Hence, it is unlikely for JB HI-FI to go out of business in this
technologically advanced market. Moreover, the technological advancement of the country
makes it easy for the company to transport their products. It further facilitates them in delivering
products to their online customers.
Impact of Political factor of 2016 on JB HI-FI
The 2016 election in Australia had little impact on the Australian retail industry as
compared to previous election. However, it was a tough tie for the retailers from the employment
perspective. The employment opportunity for the retailers considerably fell during the time of
election, which considerably affects the business and its profitability. However, the Australian
Bureau statistical report denies the complete blame on the federal election alone as according to
their report, there had been little slowdown due to it.

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References
Adeoye, A.O. & Elegunde, A.F., 2012, Impacts of external business environment on
organisational performance in the food and beverage industry in Nigeria - British
Journal of Arts and Social Sciences, 6(2), pp.56-65.
Australia GDP 2017 1960-2017 Data Chart Calendar Forecast News. Retrieved 23 Nov. 2017
https://tradingeconomics.com/australia/gdp
Auzair, S., 2011, The effect of business strategy and external environment on management
control systems: a study of Malaysian hotels - International Journal of Business and
Social Science, 2(13).
Bryson, J.M., 2011, Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.
Crane, A. & Matten, D., 2016, Business ethics: Managing corporate citizenship and
sustainability in the age of globalization - Oxford University Press.
Dam, L. & Scholtens, B., 2013, Ownership concentration and CSR policy of European
multinational enterprises - Journal of Business Ethics, 118(1), pp.117-126.
insideretail.com.au 2017, ‘The ‘election effect’ and retail - Inside Retai’, Retrieved 23 Nov.
2017 https://www.insideretail.com.au/blog/2016/05/27/the-election-effect-and-retail/
Jb hi-fi Company 2017. JB Hi-Fi | JB Hi-Fi - Australia's Largest Home Entertainment Retailer,
retrieved 23 Nov. 2017 https://www.jbhifi.com.au/

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Robbins, SP, DeCenzo, D, Coulter, M & Wood, M 2016, Management – The Essentials 3e,
Pearson Australia Group Pty. Ltd., Melbourne.