Ryman Ltd. Expansion into Poland: A PESTLE and Porter Analysis

This report analyzes the potential expansion of Ryman Ltd., a UK-based retailer of stationary products, into the Polish market. It begins with an introduction to the business environment and the specific context of Ryman Ltd., including its size, scope, mission, vision, and financial position. The report then delves into a PESTLE analysis of the Polish market, examining the political, economic, social, technological, environmental, and legal factors that could impact Ryman Ltd.'s operations. Subsequently, it applies Porter's Five Forces model to assess the competitive landscape, including the bargaining power of suppliers and customers, existing rivalry, and potential threats and opportunities within the market. The report provides strategic recommendations for Ryman Ltd. to succeed in the Polish market, based on the analysis conducted.

Ryan's Expansion in
Poland

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Background of Ryman Ltd..........................................................................................................1
Background to Business environment.........................................................................................2
Application of an appropriate analytical approach.....................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is the combination of intrinsic and extrinsic factors which can
affect the decision-making of management of an organisation due to having such influencing
factors contingency and complexity in nature. Such factors includes political situations,
economical stability, technological advancement, employees morale and behaviour etc. The
present assignment is discussing about the case study given on Ryman Ltd. which is retailer of
stationary products located in United Kingdom. The company currently decide to expand its
business operation to Poland which requires a proper analysis of market environment. Therefore,
the present includes the background of Ryman Ltd, PESTLE Analysis to identify the impacts of
business environment and Porter Five Forces in order to identify the competitiveness of new
market.
TASK
Background of Ryman Ltd.
Ryan the stationer Limited is a retail company of UK which is engaged in providing
multiple number of products such as stationary, office and home office supplies with the help of
more than 220 outlets in the UK itself. It came into existence in the year 1893 by Henry Ryman
whose headquarter is in Crewe Cheshire. In the year 1893, it open its first store as a book printer
on Great Portland Street in London which is still have existence. Mr Ryman has started its first
self service stationary show with the sales of £50 generated in week and from then to now, the
company has attained strong brand position in UK. With over 120 years if heritage and 22
shops, Ryman is well-established retailer in the high street and become of the leading retailer of
UK with their differing offerings (Company Overview of Ryman Limited, 2018). It has attained
a good reputation in UK market for excellent customer service and quality products.
Size: Ryman Ltd. has attained more than 1000 employees in the year 2017 which
contributes maximum support and efforts in achieving company's mission, vision and objectives
within pre-determined time period. It has earned approx. 128.2 million pound in the year 2017.
These all increases the size of Ryman Ltd. In UK market.
Scope: Ryman Ltd. Is UK-based oldest retailer which is engaged in providing approx.
5500 different kinds of products. It includes range of stationeries, office supplies and services
1

for home, education and business use with an standard quality and services. Due to this, the
scope of Ryman Ltd. Is wider.
Mission: The mission statement of Ryman Ltd. States that “to provide excellent
customer service and quality products to capture huge market share”.
Vision: The vision statement of Ryman Ltd. States “to expand business operations to
other nations in order to generate huge revenues as well as strong brand image all over the
world”.
Financial position: Ryman Ltd. Has a net worth of 53.2 million pound. Total current
assess of company is 59.5 million pounds whereas total current liabilities is 19.4 million pound.
This figures shows below clearly indicates that Ryman Ltd. Has attained strong financial
position in UK market due to which they are more capable to expand its business operations to
another nation with a motive of capturing large market share (RYMAN LIMITED, 2018).
Illustration 1: RYMAN LIMITED
Source: RYMAN LIMITED. 2018
Background to Business environment
Business environment is contingent and complex in nature which can makes huge impact
on the business functions of an organisation irrespective of the fact whether operated at local or
global level. It comprises of intrinsic and extrinsic factors which includes employees morale,
technological advancement, political fluctuations, economic stability etc. Ryman Ltd. Is
operating in UK with the support of huge number of employees working in their more than 220
outlets exist in UK. As Now company decide to enter into Poland market due to increasing their
capabilities and market share. But this is possible only when the management of Ryman Ltd.
2

Are able to understand the influencing factors which can their decisions of expansion in Poland
(Scanning the Environment: PESTEL Analysis, 2018). To analyse these influencing factors, the
management of Ryman Ltd. Should conduct PESTLE analysis which assist them in determining
the negative as well as positive impact on their business operation. It enables them to make
suitable strategies and plans to deal with future complexities and grab competitive opportunities.
Here are the PESTLE Analysis of Poland:
Political factors: It consists of several factors which includes political fluctuations,
changes in taxation policies, rules and regulations etc. which can affect the stability of the
organisations operated in particular. Ryman Ltd. Is operated in UK which is decided to further
expand to Poland due to which they may faced some threats as well as grabbing opportunities
which support them in making their strong presence in such nation. Opportunities: In Poland, the government are more stable and sound political
environment which makes easy for Ryman Ltd. to get easily financial support from the
investors in their expansion (Barberá and et. al., 2012).
 Threats: Increase in taxation policies of Stationary products will decreases the demand
of Ryman offerings which can affect their sustainability in Poland as well.
Economical factors: It consists of various factors which includes economic fluctuations,
inflation or deflation situations etc. In Poland, the GDP growth rate ranged from 1.6% to 6.8%
during the period of 2005 to 2012 which makes positive impact on their profitability and
sustainability of Ryman Ltd. Opportunities: The GDP of Poland is continuously grow which increases the purchasing
power of individuals. Poland is only a nation in European union which has experienced a
growth in GDP during the financial crisis in the period of 2008 to 2009. Therefore, it is
more suitable nation for Ryman Ltd. to expand its business operations due to having high
purchasing power of people.
 Threats: In Poland, high income group of people are high due to which they can shift
their buying behaviour towards the rivals of Ryman Ltd. which is newly entered into
market. Lack of trust and reliability also brings threat to the profitability of company.
Social factors: It consists of factors which is related with interest and buying behaviour
of individuals and society as a whole. In Poland, about 60.9% of the total population is living in
urban areas which is a positive sign for Ryman Ltd. who is engaged in providing stationary and
3

many other products as they can easily find out the customers due to having more in demand of
their stationary products (Chang, 2016). Opportunities: Huge number of people in Poland are living in urban areas due to which
the demand of office products offered by Ryman are more. It increase their profitability
and sustainability in market for longer period of time.
 Threats: Newly entered into market will bring disadvantage to Ryman as the people of
Poland shows less interest and trust on the products and services offered by Ryman.
Technological factors: It is related with the aspects which is mainly focused on meeting
the needs and requirements of employees as well as customers with the help of technology.
Technological advancement is an essential need which drives an organisation to perform its
business more effectively and efficiently with less time and efforts. Opportunities: In Poland, the income level of people are high due to which they prefer to
make transactions with company through online without carrying cash mount. Therefore,
Ryman Ltd. Can use online payment method in order to influence the buying behaviour
of people towards company's products.
 Threats: Ryman Ltd. Can faced lots of challengers when they come into market of
Poland as they need to recruit skilled and knowledge employees are able to work on
using digital technologies and promoting techniques which may costly to them (Clark,
2012).
Environmental: These factors are associated with the various laws and regulations for
the protection of environment from carbon emission and wastage by the government. Strengths: Ryman follows such laws for maintaining their environmental standards
which is a positive sign for the company as the government of poland critically supports
companies who follows these rules (Śmigielska, 2013). Weakness: Poland has been scolded by EU for not controlling air pollution and water
waste. So, new and strict rules has been implemeted which will be a problem as company
will face difficulties in following these strict laws.
Legal: These are various legal laws associated such as labour law, tax policy, health and
safety law, employment law etc. which are sets by government which affects the business of the
Ryman in Poland.
4

 Strengths: Poland is one of the most stable country in EU which makes it perfect
opportunity for Ryman to enter in this country. The rules and laws of poland are also
supporting the stationery industry to expand its operations.
 Weakness: Restriction of FDI and increasing risk of bribary is a weakness for company
due to the extense corruption (Drahokoupil, 2014).
Application of an appropriate analytical approach
Analytical approach is necessarily required to adopt by the organisations those who want
to expand its business operation in other nations as it assist them in identifying the
competitiveness of business environment. There are various analytical tools such as Porter Five
forces which brings relevant information about the new market. Ryman Ltd. Is company of UK
is deciding to expand its business operations in Poland which required proper knowledge and
understanding of market environment exist there. Therefore, Porter Five Forces is an effective
tool which will help company in analysing the market environment of Poland so that the
management are in position to make an effective strategies and suitable plans to grab
competitive opportunities and prevent threats. It is further explained as under:
Porter's five force model: It is a combination of five different forces that are
introduced by Michael Porter. It is mainly used to identify performance of the company in the
market (Montgomery, 2011). This model also directs the managers while they are making
strategic decisions. As Ryman is willing to expand its business in UK than it is essential for the
company to conduct a Porter's five force model so that market conditions can be analysed. All
the five forces are as follows:
Bargaining power of suppliers: The suppliers who are supplying good to Ryman may
affect the cost and profit of the organisation as bargaining power of the company with its
suppliers is very low. If there are a few number of suppliers in the market and there is a
monopoly of them in the market than they may set higher prices for their goods and the
organisation wont be able to bargain and they have to buy material form them as there are no
options available (Forsgren, 2017).
Strategies adopted by Ryman to tackle suppliers power:
 By maintaining strong supply chain with numerous suppliers.
 By contacting with other manufacturer of Poland to sell their products through their
stores.
5

 Developed reliability among suppliers whose business depend upon firm.
Bargaining power of customers: Customers bargain on such things whose prices are
not appropriate. Ryman needs to set right and affordable prices for its products so that
bargaining rate of customers may get reduced and a higher profit can be acquired by the
company. It is also essential for the managers of Ryman to sell such books that are highly
required by the customers.
Strategies adopted by Ryman to tackle buyer power:
 By building huge customer strength which lowering the bargaining power of buyers as
well as opportunity to streamline its sales and production process.
 By bringing innovative products which can limit the bargaining power of buyers.
Existing rivalry in the market: Books are sold by various companies and Ryman have
various competitors in the market hence it is very important for the organisation to have
information of all the competitors so that business can be operated effectively. Books industry is
very large that increases competition in the market (Jayaram, Choon Tan and Laosirihongthong,
2014).
Strategies adopted by Ryman to tackle intense rivalry:
 Through building a sustainable differentiation
 By collaborating with small businesses engaged in providing hospitality services in order
to increase the market size.
Threat of substitute: Different types of books are sold various sellers like novels,
magazines and other books. It is very important for Ryman to have information of all the such
substitutes so that such products can be sold that customers are actually willing to buy. If the
managers and marketers are not having all such type of informations than it may affect
organisational capacity to operate business and its other operational activities.
Strategies adopted by Ryman to tackle threat of substitution:
 By being service oriented instead of just product oriented.
 By recognising the actual need and preferences of customers.
 By rising up the switching cost for the customers.
Threat of new entrant: Now a days market becoming more competitive and new
businesses are launching in the market. Ryman should have knowledge of such type of new
entry who may affect its sales and decrease its market share. While expanding the business in
6

Poland managers of the company needs to analyse that is there any new entry in the same field
so that business wont get affected due to the same.
Strategies adopted by Ryman to tackle threats of new entrants:
 By launching new products and services which gives a reason to buyer to buy on fixed
prices.
 By building economies of scale as it can lowers the fixed cost per unit.
 Allotting funds in research and development in order to identify the actual needs and
buying behaviour of customers.
All the above mentioned five forces are required to be analysed by the marketers of
Ryman so that organisation can be expanded appropriately (Meyer, Mudambi and Narula, 2011).
CONCLUSION
It has been concluded from the above project report that it is quite difficult for Ryman
Ltd. To expand its business operations in Poland but it can be possible through analysing the
influencing factors exist in market environment of Poland. For this, the management is held
responsible to conduct PESTLE Analysis in order to identify the positive and negative impact of
influencing factors of business environment. Apart from this, Porter five forces model is also
required to be adopted by Ryman Ltd. in order to understand the competitiveness of new market
which makes easy for them to make suitable plans and strategies to strong their stability in new
market. Proper evaluation of own capabilities of Ryman Ltd. Brings motivation to expand its
business operations to other nation and capture large market share.
7

REFERENCES
Books and Journals
Barberá, L., and et. al., 2012. Advanced model for maintenance management in a continuous
improvement cycle: integration into the business strategy. International Journal of
System Assurance Engineering and Management. 3(1). pp.47-63.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Clark, P., 2012. Organizations in action: Competition between contexts. Routledge.Falkner, R.,
2017. Business power and conflict in international environmental politics. Springer.
Drahokoupil, J., 2014. Decision-making in multinational corporations: key issues in
international business strategy. Transfer: European Review of Labour and Research.
20(2). pp.199-215.
Forsgren, M., 2017. Theories of the multinational firm: A multidimensional creature in the
global economy. Edward Elgar Publishing.
Jayaram, J., Choon Tan, K. and Laosirihongthong, T., 2014. The contingency role of business
strategy on the relationship between operations practices and performance.
Benchmarking: An International Journal. 21(5). pp.690-712.
Meyer, K. E., Mudambi, R. and Narula, R., 2011. Multinational enterprises and local contexts:
The opportunities and challenges of multiple embeddedness. Journal of management
studies. 48(2). pp.235-252.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Śmigielska, G., 2013. The role of retailers in developing a healthy lifestyle in Poland. In
Challenges for the Trade of Central and Southeast Europe (pp. 55-71). Emerald Group
Publishing Limited.
Online
Scanning the Environment: PESTEL Analysis. 2018. [Online]. Available
through:<https://www.business-to-you.com/scanning-the-environment-pestel-
analysis/>.
RYMAN LIMITED. 2018. [Online]. Available
through:<https://companycheck.co.uk/company/03007166/RYMAN-LIMITED/
financials#key-financials>.
Company Overview of Ryman Limited. 2018. [Online]. Available
through:<https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=23037225>.
Employees at Ryman Stationery. 2018. [Online]. Available
through:<https://in.linkedin.com/company/ryman>.
8

9

10