The warehouse group pest analysis: strategic management Essay

The warehouse group pest analysisThe external purlieu stomach be grouped into different environmental segments, the Political/ heavy segment, economic, socio-cultural and technological segments, realizeer(a)wise known as PEST. (hanson et al) TechnologicalTechnological advances consent also impacted the industry such as the use of self-checkout machines. The ingress of self service has changed the daily interactions for customers making transactions much instant(prenominal) and easier as well as more than accurate (nz herald ref). check to NCR, which is the maker of 99% of all checkout machines in NZ, work is organism done on ATM technology which will allow transactions to be made through smartphones. (nz herald ref). This will hopefully accommodate The Warehouse Group opportunities for an increase in sales, as a carrier wave of smartphones this innovation makes way for apps to be holdd and used for store information and discounts that can be transferred directly from cust omers mobile phones. Socio-culturalThe socio-cultural environment consists of peoples attitudes and value (hanson et al ref), this externality therefore can effect all other segments of the environment. The Warehouse Group was recently influenced by the union-led New Zealand Living mesh campaign, which was focused on the need for a higher marginal liquidate in the country in order to lower the income gap amongst the rich and poor. (nbr article ref). With information about this issue the company researched the get along of income required to maintain a household and then measured it against their employees pay rates after consideration they have changed the amount they will be paying to certain employees and will soon have a minimum wage of $18.50 to $20 for experienced staff members. (nbr ref). This will hopefully create more stability for The Warehouse Groups employees. Political-legalThe political-legal environment is the force field of righteousnesss and regulations that organisations compete in for attention and resources, (Hansen et al). Possible new legislations introduced by the establishment may affect all suppliers of goods and services in NZ, the new law will make it a breach for consumer supply standard form contracts to contain unfair contract terms(ref) that instigate a assimilate it or leave it relationship between suppliers and buyers. This will give suppliers more power and could impede companies such as The Warehouse Group from gaining retrieve to cheaper supplies, The Warehouse is known for its low prices and discounted products so this may cause a decrease in sales revenue if low prices are not continuous.EconomicAccording to Hansen et al the economic environment is the economy in which a firm competes or wishes to compete in. During the global recession the retail industry suffered severe threats, most companies were forced to make cost cuts in order to make a profit, but with The Warehouse already macrocosm a discount store, ad ditional cost cuts put a ancestry on the companys performance. (ref). Market conditions today still lodge tough and competition continues to increase however the long lasting make of the recession have been key driving forces for the Warehouse Group to deport actions such as the acquisition if noel leeming, to broaden its services as a retail brand and increase profit margins.Tech http//www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10834173Political- http//www.wigleylaw.com/assets/pdfs/2013/New-NZ-Law-many-consumer-supply-contracts-potentially-illegal-by-late-2013.pdfEco http//companyresearch.nzx.com.ezproxy.aut.ac.nz/reports/nz/2012/WHS2012.pdf http//www.ukessays.com/essays/economics/the-effects-of-the-global-recession-on-the-warehouse-group-economics-essay.phpsocio- http//www.nbr.co.nz/article/warehouse-seeks-better-workforce-higher-pay-more-training-bd-139730