The Organization’s environment

 

The Organization’s environment

 

            The PESTLE Analysis establishes a good analysis of the an organization’s environment is  by breaking them into essential and obvious sorts.

Political. The resources, human and economic, make this country the most promising country in Asia in the ability of its people and the nation itself to make a stand in the global community that defines the information world at present.

 

The central government that time devoted most of the investments, for redistribution of industrial development, to the country’s inland regions instead of allocating the money in the richer coastal parts and “moved” the population into the poorest provinces that reversing it made the beneficiary regions collapse as the few other parts prosper. The price system was the other form of the redistribution system which overvalued the manufactured products and undervalued the agricultural ones (2002). However, the balanced redistribution system economic strategy of the central government collapsed because the provincial manufacturing industries have to significantly contribute to help the poorest regions which gave way to rapid growth in agricultural prices.   

Economic. The concept of endogenous economic development highlights a Hong Kong needs to allow change and make room for the growth of its production system by developing and utilizing the potential of local resources especially its people through the investment of private firms and holdings as well as of the government itself through national economic policies. The economic growth and structural change are the result of investment strategies and decisions of enterprises operating in the market and integrated into the conditions economic dynamics of territory affecting the production of the organization, the relational system and innovation as well as the learning process.

Socio-cultural. It became a large united country with an advanced culture at a very early stage, outpacing most of the world in areas such as art and science.

Technological. The tremendous growth of technological advancement has become the driving force of contemporary industries.  The diffusion of the internet has revolutionized the business arena.  The use of the Internet is changing high-tech marketing overnight while different industries have been trying to use it as part of their marketing strategy. It has not only reconfigured the way different firms do business and the way the consumers buy goods and services, but it has also become an effective instrument in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel ( 1999).

 

Hong Kong was able to adapt with modernization along with the technological advancement in progressive other countries. As the manufacturing capital of the world, Hong Kong is among the leading users of highly advanced equipment in production, supply chain management, marketing and sales. This has long been evident in the bulk of produced goods in the country as well as the generated services provided by the different industries of Hong Kong. Applications of advanced technologies in the country can be likewise observed in the emerging utilization and function of the Internet not just in business but also in other disciplines like politics and social welfare, environment conservation, culture and the arts, media and communications, and in education and research.

 

Legal- Mutual recognition of rules between, the business organization and the policy-makers of the prospect country should be at all times observed in order to avoid legal confrontations and eventual failure of the marketing strategy. Gaining the trust of the local government and reviewing the economic policies and legal matters that govern the country in which the product or service will be made available will be a strong ground from which the advertisers can make as a take off point in pursuing the any further business venture.

Environmental-  The Body Shop must consider the issues on the sustainability efforts in relations to the preservation of Hong Kong’s natural resources. In relation to the defined frontiers of their production are environmental issues that may come in conflict with the natural resources exploration. The aggressive environmental campaigns against mining activities should be overcome by the company to prolong its venture as a significant player in the international retail industry.

 

 

 

 

Strategic Direction

Most companies find it impossible to create any kind of sustainable competitive advantage based on product alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage.  (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself.

Perhaps the space between the new organization design and implementing it into actuality is the whole coverage of organization change and development. People are adaptive to change. However, certain skills must be present from the initiators of change so as to successfully implement their project. Thus, managers need to have the necessary abilities not only in detecting what needs to be changed but also how to effectively introduce the change. Companies employ detailed business plans and strategies in order to gain several benefits from its competitors such as increased profits and enhanced customer relations as company objectives. According to (2000) balance between enhanced company processes and renewed objectives should be critically appraised in order to ensure the success of the company.

 

Business institutions can control and influence the quality and standard of life of their employee, customers, business partners, the people in the community in which they operate. There are even times that their influence or control goes beyond the community or area where they operate. This is true, since the influence of businesses does not end within the company or their customers. Because their products and/or services may reach people other that their customers. Thus, they have such great responsibility, not merely within the company, with their employees, customers, business partners, but also the far greater number of people outside the company.  A company has such great power, this is because a single decision the company makes can affect a number of people and in cases of large companies, thousands of people.  Thus, there is no question that the company should be social responsible. It is how much they should be socially responsible that is of concern. And it depends on the company’s capacity to do so and how willing they are to do it.

            The Body Shop (HK) is a global company with a number of branches worldwide. It is quite obvious that they also have a great number of employees, business partners, small and large producers and most importantly a large number of customers. The company mainly adheres to the greenest and eco-friendliest policies regarding its products, starting from how they are produced till its post – production. This alone is an act to commend for. In our time today, companies are more concerned with profit-making. There are those who are concerned on how their products are produced but few goes to the point that they concern themselves to what happens in their post- production or to the point of concerning themselves whether their products have negative effects to the environment or other people other than their customers.

            Recently, L’oreal cosmetics bought The Body Shop and become its new owner. The L’Oreal Group is known for their continuous innovation in order to impr4ve the quality of their products and the services they have to offer to their consumers (2004).  Part of their strategic plan is to cater to the best interest of their costumers, in other words, costumer satisfaction.  Through giving a wide variety of products, consumers have a whole gamut of products and services that they can choose from and which best serves their preference.  Through constant research and passion for innovation, L’Oreal best caters to the demands of women of different cultures.  The Company also sees to it that they know the latest trend, or better yet, set the trend in the market as to attract more consumers.

Part of the L’Oreal Group’s strategic plan is the marketing of their products worldwide.  From the bloom of L’Oreal during its primary stage, the Company already catered to the demands of women worldwide.  In line with this, they are also well aware of the diversities of women around the world.  Part of this strategy is to formulate products that suit other women from other parts of the world (2004).  Through research and development of their products, the L’Oreal group has already covered most parts of the globe and still got high approval ratings from their clients.  Just recently, L’Oreal received the Diversity Best Practices 2004 Global Leadership Award for embracing diversity, not only in their employees, but also in their consumers ( 2004).  L’Oreal’s taking consideration of women of color is especially appreciated by its consumers for they are also being given the chance to enhance their features and embrace their diversity without having to conform with the traditional concept of beauty, particularly that of the white women.  The L’Oreal Group also has employees who are considered minorities, such as the women and people of color.  Valuing of the people’s culture and ideas is important to the Company in order to best serve the interest the consumers, the employees and the Company.   Since, L’Oreal Group is the owner of The Body Shop; will there be new marketing strategies for the company?

 

 

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