The warehouse group pest analysis: strategic management Essay

The warehouse group pest analysisThe external environment can be grouped into different environmental segments, the Political/legal segment, economic, socio-cultural and technological segments, otherwise cognize as PEST. (hanson et al) TechnologicalTechnological advances get under ones skin also force the industry such as the use of self-checkout machines. The introduction of self military service has changed the daily interactions for customers making transactions much faster and easier as well(p) as more accurate (nz herald ref). concord to NCR, which is the get downr of 99% of all checkout machines in NZ, work is being done on ATM technology which will allow transactions to be disembowel through smartphones. (nz herald ref). This will hopefully give The Warehouse collection opportunities for an increase in sales, as a carrier of smartphones this innovation makes federal agency for apps to be created and used for store information and terminates that can be transferred presently from customers mobile phones. Socio-culturalThe socio-cultural environment consists of peoples attitudes and values (hanson et al ref), this externality therefore can effect all other segments of the environment. The Warehouse throng was recently influenced by the union-led New Zealand Living Wage campaign, which was focused on the need for a higher minimum wage in the inelegant in order to lower the income gap between the rich and poor. (nbr expression ref). With information about this issue the companion researched the amount of income required to contain a household and then measured it against their employees pay rates aft(prenominal) consideration they have changed the amount they will be paying to received 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 area of laws and reg ulations that organisations compete in for attention and resources, (Hansen et al). Possible new legislations introduced by the government may feign all suppliers of goods and services in NZ, the new law will make it a breach for consumer supply standard form contracts to contain raw contract terms (ref) that instigate a take it or discontinue it relationship between suppliers and buyers. This will give suppliers more power and could thwart companies such as The Warehouse Group from gaining access 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 degraded competes or wishes to compete in. During the global recession the retail industry suffered weighty threats, most companies were forced to make cost cuts in order to make a profit, but with The Warehouse already being a disco unt store, additional cost cuts put a strain on the companys performance. (ref). Market conditions today still remain tough and competition continues to increase however the long lasting effects of the recession have been key driving forces for the Warehouse Group to take actions such as the acquisition if noel leeming, to broaden its services as a retail tarnish 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/ economic science/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