Sears Holdings Corporation is operating in Department Stores in more than dozen countries and expose itself to different types of political environment and political system risks. While micro environment factors such as competition norms impact the competitive advantage of the firm. Bureaucracy and interference in Department Stores industry by government.
Changes in the macro-environment factors can have a direct impact on not only the Sears Holdings Corporation but also can impact other players in the Department Stores.
The achieve success in such a dynamic Department Stores industry across various countries is to diversify the systematic risks of political environment. Education level in the economy Labor costs and productivity in the economy Business cycle stage e.
It started an above average profitability operations in Argentina and made strong returns in years. To help Sears Holdings remain competitive they must remain conscious of market trends and internet technologies. This state of the art of technology heats a pot of water in literally a second and keeps the pot at a constant temperature.
Infrastructure quality in Department Stores industry Comparative advantages of host country and Services sector in the particular country. These factors, which make up the external environment, include factors in the remote, industry, and operating environment.
Technological forecasting can help protect and improve the profitability of firms in growing industries From a competitive position standpoint this move will allow The nature and degree of industry factors relies heavily on competitive forces.
Technology will also be a concern for the organization. In the remote environment there are economic and technological factors that will impact Sears Holdings.
During the next decade Sears must remain active in the Research and Development sector as new technologies are being introduced to sustain its advantage in the home-appliance business.
Product labeling and other requirements in Department Stores Economic Factors that Impact Sears Holdings Corporation The Macro environment factors such as — inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy.
For example, Kenmore, a key proprietary brand, recently introduced a cooktop oven that uses electromagnetic frequency rather than conventional heating elements.
Skill level of workforce in Department Stores industry. Economic factors that Sears Holdings Corporation should consider while conducting PESTEL analysis are - Type of economic system in countries of operation — what type of economic system there is and how stable it is. Economic factors such as availability of credit, level of disposable income, and the willingness of people to spend will all be major factors affecting the company Pearce-Robinson, The macro-environment factors can impact the Porter Five Forces that shape strategy and competitive landscape.
Currently, Sears is the number one home appliance retailer as well as a leader in tools, lawn and garden, and home electronics. Customers will be able to purchase their appliances, schedule an appointment, and even view, in a real time environment, the location of their service technician.
One of the more critical factors affecting the company in regards to the industry involves new entrants and innovation. Article continues after ad PESTEL analysis provides great detail about operating challenges Sears Holdings Corporation will face in prevalent macro environment other than competitive forces.
During the next five to ten years the internet will become a way of life. In recent years, the ease and availability of the internet has opened the doors in the retail setting where people now do not have to leave their home to purchase everyday items.
Sears must remain conscious of new technologies and new entrants into the market in order to maintain its advantage over its competitors.
These competitive forces include the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products or services, and jockeying among current contestants Pearce- Robinson, To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might influence its industry Risk of military invasion Level of corruption - especially levels of regulation in Services sector.
Spanish oil giant Repsol had to face a similar instance. Efficiency of financial markets — Does Sears Holdings Corporation needs to raise capital in local market?
In the future, there will be companies that develop more technologically advanced products and appliances than what is on the market today. But the business was later expropriated by the Left Wing government.External Environment Of Sears.
Chapter 4 The External Environment The Environmental Domain Organization Environment is composed of all elements that exist outside the boundary of the organization that have the potential to affect all or part of the organization.
Its domain is the chosen field of action.
InSears Holdings sold off Kmart and Sears stores. A group of investors have been following the retail sector and Lampert’s actions sinceand are interested to see what he will do with the struggling stores. Environmental Analysis Of Sears Holdings. Business and Industry Analysis Business Analysis Sears Roebuck & Co., Economic, Social, Technological, Environmental, and Legal.
By analyzing and studying each area, a company can create a strategy that most benefits them.
Sears Holdings is very well influenced by technological developments as they are trying to implement the shop where you want when you want standards. The technological environment influences businesses to invest in technology and the consistent applications of new technologies%(4).
Sears and Kmart have aligned their environmental goals with that of the general public. Sears and Kmart realize promoting a clean environment can benefit both themselves and society as a whole.
Many of the appliances Sears sells tout the label of. All Acronyms. SEAR [Internet]; Aug 8, [cited Aug 8]. Available from: mint-body.com MHRA 'SEAR', All Acronyms, 8 August[accessed 8 August ] Bluebook All Acronyms, SEAR (Aug. 8,PM), available at mint-body.com CSE .Download