SCREWFIX: Business Environment Analysis for Netherlands Expansion

This report analyzes the potential for SCREWFIX, a UK-based multi-channel retail company specializing in hardware and tools, to expand its operations into the Netherlands. The report begins with an introduction to SCREWFIX, its mission, goals, target market, and unique selling proposition. It then discusses the business environment in the Netherlands, utilizing the BCG matrix to assess market opportunities and potential risks. The report also applies analytical models, including PESTEL and Porter's Five Forces, to evaluate the political, economic, social, technological, environmental, and legal factors influencing the business environment, as well as the competitive landscape. The analysis aims to provide insights and recommendations for SCREWFIX's strategic expansion into the Netherlands, considering market conditions and competitive dynamics.

Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Discussion about allocated business environment......................................................................3
Application of an appropriate analytical model..........................................................................4
Data and charts to support business in Netherlands....................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business determine as a commercial activity where an individual trade product and
service and gain some consideration against for it (Anderson and et. al., 2016). For profit and
growth accomplishment, it is really important to expand business so that more and more profit
could be gain. This project reflected on the SCREWFIX which is one of largest United Kingdom
multi channel retail association whom dealing in hardware products, accessories and trade tools.
It was founded in the year 1979 as a wood-screw company which further get acquired by
Kingfisher Plc and listed in the London Stock Exchange. It is UK number 1 catalogue and
facilitate appropriate and suitable products and services to each and every individual.
Company have more than 1000 stores in all over the globe by including Europe, turkey
and Russia. Company offer more than 11000 products which available at 570 worldwide stores.
Many of the products get ordered from phone or via online as well as from local stores which
enable and made user satisfy. Share price of product and services which offer by a company is
343 p which stated that management properly work on product and services of a company. The
annual sales of SCREWFIX (Kingfisher Plc) is £11.2 billion which stated about number one
catelogue company in the world. The company funding source is from public investment due to
listed in London stock exchange. They are providing good quality products which have a clear
objective to improve their home which get done through professionals and experts.
Number of employees whom are working in SCREWFIX about 7299 and have much
potential to work on innovation and modification of things. They have opened more than 500
stores in the world in which 11500 products are available with range of 25000 products.
Germany determine as one of a most successful region for a country where they open 19 stores
and provide jobs to 200 individual whom have potential to work towards new design and
specified products. In Germany, company deliver and provide around 9000 products to their
ultimate user which enable them to maximise appropriateness and effectiveness with satisfied
user.
Company working and motivating their work with current and recent trends where they
provide option to all define user to order products and services through online market as well
(Brustbauer, 2016). It is a reason that company align their work with Amazon which signify as a
one of a finest online shopping mode. All these sections enable management to generate more
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and more profit as well as growth which support to maximise absolute working and target
accomplishment.
Now, Kingfisher Plc want to open up their famous subsidiary SCREWFIX in Netherlands
as well so that their expansion criteria get expand. This facilitate an option for management to
generate more and more revenue. This consideration will enable them to maximise working
operation as well as contribute some consideration in growth of economy. Hence, for opening up
a new outlet chain over there, management want to organise a study which reflect about
effectiveness of concern area.
Mission statement of SCREWFIX: “SCREWFIX is convenient, straightforward and affordably-
priced, helping its trade customers get the job done quickly, affordably and right first time.”
On the basis of prefer mission statement of a company it get evaluated that prices of
product and services are convenient and affordable in nature as well (Goleman, 2017). It enable
in getting job done properly at the right time so that better and effective gain could become
possible.
Goals and objectives of SCREWFIX:
 To deliver appropriate quality products with on time delivery frame
 To provide products and services at affordable price range
 To get the things done on time
Segmentation and targeting group:
Business usually target home group individual which want to make their live proper and
appropriate in frame. The product range are appropriate and affordable to every home living
individual which further facilitate to enhance experience of their clients (Henry, Foss and Ahl,
2016). This section will support them to maximise appropriateness of working.
Unique Selling proposition:
USP of SCREWFIX is to deliver quality products to each and every group of individual
by targeting every section of society. USP of the products and services which deliver by
company is:
 Price range of products
 Quality assurance
 Delivery within one day by concentrating at the time of placing order
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Thus, when SCREWFIX (Kingfisher Plc) will going to enhance their number of operations in
other region then they required to follow all these considerations in a better suited manner so that
effective reflection could be gain. This will assist them to manage operations which enable in
order to generate more and more profit with growth and revenue. This lead to support in order to
provide better working abilities through which effectiveness and efficiency could be manage and
maintain in a define suitable frame.
Discussion about allocated business environment
Business operated in dynamic environment which get change or modify with a course of
time (Sekaran and Bougie, 2016). Thus, whenever any organisation will going to operate and
expand their number of operations, then management need to analyse and interpret the growth of
concern market area so that better suited results and outcome could be drawn. This facilitate to
maximise appropriateness of working and support to gain better judgement for further
consideration. In this aspect, growth of concentrated market need to assess in a better and
suitable manner for gaining efficacy.
SCREWFIX (Kingfisher Plc) wants to expand their operations in Netherlands for which
they are going to utilise BCG r Boston Consultancy Matrix which facilitate an option for an
organisation to maximise effectiveness and efficiency which support to gain judgement in order
to made further investment properly. Hence, following is a description about BCG matrix in
consideration with new area of development and growth: Star: It signify about the high growth rate with maximum market share and depicts that
profit will get maximise in future aspect properly. Whenever any kind of investment or
growth related options could be estimated management need to underpin that concern
area have appropriate growth or not. If not, then they need to drop out such plan and
move to other area by putting several alternatives as well. SCREWFIX have good market
share and growth in Europe, Turkey etc. but they need to asses nature of Netherlands as
well (Shahriar, Schwarz and Newman, 2016). If they evaluate that market growth and
share will get reduce in near by years, then starting activities over there is not a good
option. Cash cow: It define about low growth but high market share thus management need to
assess this option in a beneficial manner. Sometimes, investing in low growth area is
good but only in the stream when high market share get articulated. It is really important
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for business association that to evaluate the growth and market share properly for
managing investment related decision as per finance. SCREWFIX need to assess that
Netherlands market system where they concentrate on growth and share of area. If the
market scenario based on cash cow where growth options are low but suitable market
share could be obtain then such area is not not beneficial in nature. Dogs: Sometimes, several regions whom economy consideration is low growth and low
market share then such area need more and more contribution. It is really important to
estimated and understand the concept of dog element (Storey, 2016). It is really essential
to underpin such interest properly so that better and suitable working get done. Although,
such regions are not beneficial and appropriate in frame and signify more suitable
working. Hence, SCREWFIX need to determine the market environment of Netherlands
so that beneficial and suitable aspects could be gain. If they found that market area is not
profitable and simplify low growth and share then they need to back-step about their idea
and concept of investing into such country. Hence, they will going to get nothing and
only loss. This idea need to determine by experts in a beneficial and suited frame.
 Question mark: This area is quite differ from others where growth is high in matter of
fact but share of market usually low in nature. Thus, management need to assess this
section properly and evaluate that if they will gain growth in near future then chances of
appropriate gains must be high but business need to bear the low market share
abbreviation as well. Although, SCREWFIX need to estimated this aspect as well at the
time of Netherlands expansion so that better suited work get done for deriving
appropriate and beneficial outcome.
Business environment have to assess by management of SCREWFIX at the time of expansion in
Netherlands and other related countries. They already gain growth in Germany and many others
parts of the world by analysing such areas (Tukker and Tischner, 2017). Hence, management
need to perform BCG matrix on desire market area so that expansion become possible and
absolute in frame so that effectiveness and efficiency in working could be assess for enriching
number of things and stores around the globe. This will facilitate management to gain growth
and development in near field area so that efficiency could be manage and accomplish.
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Application of an appropriate analytical model
Whenever any expansion related option could derive in front of any business
organisation, they need to analyse each and every aspect properly so that better working options
and effective service delivery could be done. SCREWFIX will going to maximise their business
in Netherlands as well for which they want to organise a study and analyse the area for managing
work in an appropriate and absolute frame (Van Der Aalst, La Rosa and Santoro, 2016). In this
aspect, there are mainly two analytical approaches could be utilise which are: PESTEL and
Porter 5 Forces framework
PEST analysis:
Basis Applicability
Political Whenever any business want to expand their number of operations in any
other region they first have to analyse the political situation of such
country. Stabilise government always enhance the work and motivate
business to contribute more and more in growth of a country. Netherlands
have stabilise government nature which support SCREWFIX to execute
their operations in a better suited manner. Dutch country do not have any
kind of chances to gain fluctuation in operations.
Economical Economic condition of a region get evaluated on the basis of rate of
employment, export and import etc. It is really important to identify the
economical condition of a country when expansion related projects get
articulated. This will assist management to facilitate growth options in near
future as well as promote feasibility of project related options as well. In
this consideration, Netherlands identify as sixth largest economic power in
the world as well as export maximum goods to other country. SCREWFIX
can start their business in such country where possibility of appropriate and
suitable gains tends to rises in a better suited framework.
Social culture Variation in culture is a major thing and there are maximum number of
countries get evaluated where culture diversifications get evaluated. It is
really essential to identify the social culture aspects at the time of expansion
of any enterprise. By evaluate all cultural dimensions properly,
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management become able to target appropriate group. Netherlands have a
diversified culture background terminology which need to assess properly
by SCREWFIX so that better and effective working could be done as well
as better results get associated. Society mostly prefer high standard of living
which reflect to enhance profit by delivering quality hardware tools.
Technological Technological advancement is a major thing which enable and support
business entity to grow and maximise their number of operations by making
customers satisfied in nature. Netherlands have a good economical situation
as well as they more prefer technological advancement in the world. This
attracts most number of companies to invest over there and signify a good
market growth and share option. Hence, SCREWFIX could utilise their
option of online placing order over there so that better and effective growth
could be manage over at such places.
Legal Legal regulations need to understand by every individual so that chances of
harm to their reputation could be minimise. It is really important to consider
all laws related with employees, establishment of company etc. by business
managers which facilitate in order to perform appropriate work.
SCREWFIX, need to understand the laws which formulated in Netherlands
as regulations also get vary from region to region. At Netherlands, working
hours act 1995 take place under which the working hours are 8. If company
lead to unfollow this amendment then they have to face heavy harm to their
image if someone will going to sue them.
Environment Environment protection is a one of a major thing which required to
understand by every business entity. The environment needs to be safe so
that better and effective working options could be underpin so that better
and supportive working options could be done. SCREWFIX is one of a
largest SCREW designing company of UK whom need to understand this
section properly and manufacture appropriate quality products and conserve
environment as well. This will enable them to gain competitive advantage
at new market area and gain leverage of appropriate goodwill company.
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It is really important for SCREWFIX to utilise this analytical framework in their working
which further assist them to gain competitive advantage. Although major competitors of a
company are Warehouse Direct but they do not have much potential like SCREWFIX to compete
into such market area. Along with this, management have good market position as well as it is
quite easy for them to operate in Netherlands as well (Wales, 2016). Such aspect will going to
contribute in increasing overall effectiveness and efficiency of working so that better associated
results could be drawn in a beneficial and appropriate manner.
Data and charts to support business in Netherlands
SCREWFIX is the largest multi channel in United kingdom, that deals in different
products such as hardware, trade tools and accessories. Main aim and objectives of this business
is to provide quality and effective products to the customers at reasonable rate. In order to
expand their business operations and functions at international and national level, they should try
to maintain long-lasting relationship with customers. In the company, there are different
departments which play vital and essential role in the success and development of business
growth. In regards to achieve predetermined and desired objectives in limited time period they
apply various tools such as BCG matrix, PEST analysis and many other (Westhead and Solesvik,
2016). Sometime these approaches are highly impacted business operations in a indirect and
direct way.
Economic conditions: It is identify the state economy in a region and country. Changes
in the business operations and activities highly effect on nations. Variation in the business cycles
and economic through contraction and expansion (Westhead and Solesvik, 2016). Economic
conditions are effected by numerous microeconomics and macroeconomics facts, including fiscal
policy, monetary, unemployment levels, inflation, exchange rate, productivity, state of the global
economy and many others.
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(Source: Effect of economic condition on business performance, 2018)
Interpretation: From the above mentioned graph that shown the effects of economic condition
on business performance and its profitability ratio. It is determined the impact which is not good
for the enterprise to increase their sales and revenues in limited time duration. This analysis
assist them to maximise and execute operations properly in Netherlands as well. But such aspect
suppose to support with several charts and graphs which signify about effectiveness of working
over there.
CONCLUSION
From the above mentioned report, it can be concluded that business covers different
activities and functions which are important for the success and development of them. In this
business environment is classified into two parts internal and external which can highly effects
on business performance and profitability. There are different tools and techniques which are
used by the company in order to introduced their products and services in marketplace. Further
they apply BCG matrix, PEST analysis and many other which assist the manager to increase
their business operations and functions at international and national level. Economic condition of
the country is also impacted on company performance and profitability.
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REFERENCES
Books and Journals
Anderson, D.R. and et. al., 2016. Statistics for business & economics. Nelson Education.
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural model.
International Small Business Journal. 34(1). pp.70-85.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of
methodological approaches. International Small Business Journal. 34(3). pp.217-241.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Shahriar, A. Z. M., Schwarz, S. and Newman, A., 2016. Profit orientation of microfinance
institutions and provision of financial capital to business start-ups. International Small
Business Journal. 34(4). pp.532-552.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Tukker, A. and Tischner, U., 2017. New business for old Europe. Taylor & Francis.
Van Der Aalst, W. M., La Rosa, M. and Santoro, F. M., 2016. Business process management.
Wales, W. J., 2016. Entrepreneurial orientation: A review and synthesis of promising research
directions. International Small Business Journal. 34(1). pp.3-15.
Westhead, P. and Solesvik, M.Z., 2016. Entrepreneurship education and entrepreneurial
intention: Do female students benefit?. International Small Business Journal. 34(8).
pp.979-1003.
Online
Kingfisher plc. 2018. [Online]. Available through :<https://www.kingfisher.com/index.asp?
pageid=36&region=germany>.
BCG Model. 2018. [Online]. Available through
:<http://www.valuebasedmanagement.net/methods_bcgmatrix.html>.
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