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Business report - Essay Example

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654458 – Master Order#: 654458 Total Price: $30   Messages:   2 total  Style:  Chicago  Language Style:   Not a native speaker  Grade:   n/a  Pages:  5  Sources:   8  Introduction Woolworths, an Australia based organization, is one of the foremost names in the food retailing industry in Oceania…
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Download file to see previous pages... Essentially a service sector organization, Woolworths purchases its goods mostly from Australian farmers and since most purchases are domestic, their products are fresh. The report would focus on how such a successful firm can enter the Indian markets given that there is currently a retail boom in India as well (Ramaswamy and Namakumari 2009, 105). Since Woolworths is into fresh food, it is imperative that procuring the food items from Australia and shipping the same to India would not make sense. Thus, the best option to avail is to procure it from the Indian farmers and sell it in the same country, though the model they should follow has to be reviewed thoroughly in order to make a fitment between the demands of the Indian market and what Woolworths would like to offer. In the case of Woolworths, since the primary product offering is fresh food items as well as processed food, it is obvious that the basic requirement is not technological or even manufacturing plants but a sound infrastructure that would ensure strong linkages with the markets – both of the farmers who are to supply the produce on a regular basis as well as the customers who are to buy the same. However, the main focus of Woolworths should be on value addition to those products. The report would focus on the macro environmental factors that are likely to come into play if Woolworths were to expand into the Indian retail markets. Thus, the report would start with the PESTL analysis and then move on to the specifics of the firm by doing a SWOT analysis of Woolworths. Having done these two analyses, the recommendations, whatever suitable for Woolworths, would be made in order to make the expansion project a success. PESTL Analysis The first analysis that should be performed is the PESTEL Analysis, which is defined as amalgamation of various macro-environmental forces that drive the organization’s performance and comprises the political, economic, sociological, technological, ecological and legal forces (Viardot 2004). Furthermore, “it assists companies in the selection of attractive markets and the appropriate entry mode” (Aubert and Frigstad 2007). Political India is typically a politically stable nation that has been trying to attract FDI, and more so in retail. This should prove to be an advantage so far as the political environment of Woolworths in India is concerned (Krafft and Mantrala 2010, 130). Even Asian countries like India and China have slowly opened their doors to globalization, thereby welcoming conglomerates like Woolworths. In the wake of globalization, regulation and tax policies and FDI policies are to be relaxed considerably and even China and India have deregulated and delicensed various products making it further congenial for Woolworths to operate. However, various quarters of the political sector has exhibited stiff resistance to FDI in retail and especially multi brand retail (Datt 2008, 178). It is clear that since the government is keen on investment in FDI, thus the environment would work to the benefit of Woolworths in India. Legal The legal environment of Woolworths in India again points out to some of the encouraging features of increased investment in FDI on the part of the government as well as other legalities that may have to be fulfilled while opening retail outlets in India. The working age and other ...Download file to see next pagesRead More
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