PEST Analysis for HMV - Essay Example

Human Resource (HR) Human Resource (HR) Pest analysis for HMV Pest analysis is employed when scanning the business environment with the aim of reviewing the market, the competitors, and an organisations situation (Slamanig, 2012). It comprises of the following external factors: political, economic, socio-cultural, technological, environmental, and legal factors (Terry, 1977). The main threats to HMV business are supermarkets, music that is downloadable, and online retailers (Hanlon, 2015). Political factors More often political issues may become laws. The use of social media has been under siege in some countries. For an example, twitter has been banned in some countries while facebook has been blocked by various governments such as Korea. Companies that opt for such media for adverts may be affected (Hanlon, 2015). Economic factors The advancement in the use of internet has led to the existence of pricing options of products from companies. The use of online platform through internet provision is gradually and rapidly transforming economic aspects of operations of companies. HMV should apply both the physical stores and online platform to maximize it sales in the entertainment industry whose economy has been steadily rising (Hanlon, 2015). Socio-cultural factors The HMV management should have a comprehension of the socially accepted practices within the various cultures that are available online in attempting to market their products. This includes appreciating the dynamics and differences and beliefs of societies within its online market since obtaining this is easier than before. It has the potential of not only creating opportunities but also opening new markets for the company (Hanlon, 2015). Technological factors The company has a technological leverage in their internet site for retail which makes them competitive with other players/industries in the market. Its online store will likely be versatile as it will enable integration of window media player, iTunes, et cetera. In addition, infiltrating into the digital market is an innovative way of growing with the demand of the consumers. HMV anticipates enhancing their competitive leverage by diversifying experiences in the entertainment over the contemporary rivals. The group of HMV has a joint venture with companies such as Curzon Artificial Eye for the purpose of bring the experience of cinema to the retail outlets of the company (HMV, 2015). Environmental factors The production of DVDs and CDs should entail the use of materials that are both non-biodegradable and non-renewable. The recycling process has proved to be not only complex and costly but also inefficient. Moreover, CDs and DVDs with high storage capacity are being encouraged to minimize the amount of the CDs and DVDs produced (HMV, 2015). Legal factors The sale of physical entertainment offered by HMV has been affected by issues such as illegal downloading privacy. This has significantly impacted on the growth of digital channels that are legal. The failure of the government to take measure and control copyright violation poses a threat to the industry of entertainment (HMV, 2015). Job advert for the new marketing Director HMV-Marketing Director Age: 30 and above Key skills: digital and online marketing, traditional marketing, promotions, sales, and generation of leads Job Description: Responsibilities: developing marketing techniques of HMV product; analyzing the political factors that stem from use of social media as a marketing tool and providing solution; projecting the economic factors relating to the entertainment industry such as techniques of cutting online prices to align with customer needs and demands; to provide an analysis of the socio-cultural trend of consumers on the online purchase and marketing platform; to identify and lead in the creation of innovative internet site for competitive reasons; provide solutions to environmental factors in the production of DVDs, CDs et cetera; and create policies that are able to influence players in the entertainment industry in fighting against illegal issues such as copyrights and illegal downloads. Salary: 140000-200000 Euros Industry: entertainment Functional Area: marketing, promotion Role: marketing manager Personal specification: Education: Undergraduate: Any graduate Postgraduate: MBA Other Requirements Experience in the marketing of entertainment products for a minimum of five years Innovativeness, hard work, and honesty A plan outline for the selection strategy The strategy for selecting the ideal candidate for the job will entail shortlist of the applicants after which the applicants will be assessed before the job is offered to the qualified candidate. The application for the applicants will encompass the use of online platform where they will be provided with application forms (Taylor, 2005). In the forms, there will be a provision for editing CV before submission. The application forms will be appropriately examined in the human resource department to avoid issues such as unfair discrimination which my prompt a candidate to file a charge against HMV in the employment tribunal (Murray-Webster & Williams, 2010). The online platform in this case will be used to manage the number of applicants from the candidates who are out rightly unfit for the advertised position. The assessment of the shortlisted candidates will be employed such as the use of aptitude tests on marketing entertainment products, test on how conversant the candidates are on the knowledge of issues such as privacy and illegal downloading of entertainment products; the environmental factors in the production of these products, the economic implications on the use of online and physical stores in selling of the products, and political issues on the use of social media for marketing among others (Arthur, 2012). In addition, the candidates will be interviewed by a panel of experienced marketing experts in the entertainment industry. However, these candidates will be informed on the expectations of the selection process such the time the interviews and tests will consume. After the assessment through the interview, the candidates will be informed on their performance in the interview process after which the candidate with the highest performance rating will be subjected to training. After the training, the candidate will be absorbed though on a probation period until the capability of the candidates is determined. The candidate will then be provided with the appointment letter with all the necessary requirements for the job for the purpose of obtaining consent on the job offered by HMV. References: Arthur, D. (2012). Recruiting, interviewing, selecting & orienting new employees. New York: American Management Association. Hanlon, A (2015). Using the PESTLE analysis model. Retrieved on 18th May 2015 from: http://www.smartinsights.com/marketing-planning/marketing-models/pestle-analysis-model/ HMV (2015). PESTLE Analysis. Retrieved on 18th May 2015 from: http://jhsyn7.wix.com/ray#!pestel-part-2 Murray-Webster, R., & Williams, G. (2010). Management of risk: Guidance for practitioners. Norwich, England: The Stationery Office. Slamanig, M. (2012). PEST Anaylsis Hungary: Country Evaluation and Selection of Hungary. München: GRIN Verlag GmbH. Taylor, S. (2005). People resourcing. London: Chartered Inst. of Personnel and Development. Terry, P.T (1977) Mechanisms for Environmental Scanning. Long Range Planning, 10, 3: 2-9. Read More