The shrinking world due to Globalisation Essay Example

any job cuts. However, there were some reductions in the workforce which made it challenging for customers to find available staff for assistance. Strong leadership, a motivated team, and an effective organizational culture are the main factors that contribute to Waitrose's success as a retailer in the UK. John Lewis partnership acquired Waitrose in 1937 and opened its first supermarket in 1955.

In the UK, Waitrose currently has 222 supermarkets, a catalogue, and an online business. They also have divisions in the UAE. In the 2009/10 study, the partnership turnover was ?6bn. In the second half of this year, they experienced an 11.4% increase in sales, while sales in John Lewis were 1.3% lower. In Dubai, they operate a 5137sq metre store with 150 employees in Dubai promenade, in partnership with the company Spinney. The first Waitrose store was established in Dubai in November 2008, and by around 2010, there will be an additional 20 stores open, including one in Bahrain.

Waitrose has announced that it will open its first smaller convenience shop in the summer as part of its plans to increase its presence in the UK's convenience sector. The first shop, located in Fitzroy Street, Cambridge, will open in early summer and create up to 40 new jobs. This is the first of four initial tests of the format planned for this year and will be the first Waitrose store in its core estate to measure under 3,000sqft. These smaller convenience stores will help Waitrose reach 6.5 million potential customers who currently have limited access to the brand. The constant changes in organizations can be observed from the above paragraph.

Employees are impacted by this change

and they demand to adapt, learn new skills, and acquire knowledge in order to keep up with the pace in the market. However, due to the changing business climate and technology, companies should provide employees with comprehensive knowledge and skills to create a competent workforce. Various external factors, such as political, legal, socio-cultural, and environmental factors, have an impact on the working culture and environment of companies like Waitrose. In this analysis, we will examine these external factors under different categories.

Change facts

Organizational change refers to the transition from a company's current state to a desired future state. Managing organizational change involves planning and implementing changes in a way that minimizes employee resistance and costs for the organization while maximizing the effectiveness of the change effort.

Organizational changes can arise due to various factors, such as market competition, internal issues, or the desire for resource efficiency. In essence, companies undergo change when they confront challenges or aim to improve their operational effectiveness.

However, on some occasions, the most beneficial change occurs not due to problems but rather due to opportunities. In 1990, Bateman, Thomas S., and Carl P. Zeithaml coined the term "performance gap" to refer to the disparity between a company's actual performance and its potential performance. The recognition of a performance gap often serves as a motivation for change, as companies strive to enhance their performance to meet expected standards.

This type of expansion is where many entrepreneurs find opportunities to start new businesses.

Analysis

The world is becoming smaller and changing every day. These changes are also affecting business. Businesses are altering their organizational systems, feature

structures, and previous business environments in order to comply with new government legislation or develop new products. There is a lot of competition in making these changes, and here we will explore how to reduce this competition. The easiest way to do this analysis is through PESTLE analysis and SWOT analysis.

"PESTL analysis allows companies to understand the external environment in which they operate and helps them establish their future plans" ( Blery & Sfetsion, 2008 ). Conversely, to determine the connection between external and internal evaluations in strategic analysis, SWOT analysis is necessary. By analyzing the crucial factors of the environment and the key internal strengths and weaknesses of the organization, SWOT analysis assists in determining the appropriate strategies for the company.

PESTL Analysis on Waitrose

It is highly important for any organization to pay attention to their external environmental factors.

External environmental analysis can help identify industry trends and forecast the future. Waitrose could utilize PESTLE analysis for various advantages. It is beneficial for Waitrose to use it as a checklist, as even small deductions can be made. It can also help identify key pressures and drivers of change. Waitrose can determine which elements are most important and how their impact may change over time.

Political factors

The most frequent political concerns are law and political stability.

Law is crucial for any business state as the government is constantly changing. Since politicians come from different backgrounds, they may have indifferent opinions. Consequently, they create laws based on their individual perspectives.

It is expected that various industries will be impacted by this law. For example, in the UK in 1996, they implemented a regulation regarding the restriction of sales and

distribution of knives. Australia also banned automatic weapons, while Belarus restricted the sale of certain foreign goods (Chee and Hassis, 1998). The legal aspect may also encompass laws, government agencies, and pressure groups that have an influence over and set limits for various organizations and individuals.

These Torahs can often create new opportunities for concerns.

Economical factors

There are several interface between the concern and its economic environment. Economic conditions have significant implications for concern strategy, affecting cost, consumer demand, funding options, availability of raw materials, pricing, and other matters (Roger Bennett 1999). The United Kingdom has a robust economic growth and high GDP trends.

The Bank Rate in the United Kingdom is forecasted to rise to 5.75% by the close of 2007. Concurrently, there has been a decline of 2% in Sterling's effective exchange rate. Throughout 2006, the UK witnessed substantial expansion in credit and wide money, accompanied by a 0.7% increase in domestic merchandise. The purchasing power relied upon by both markets and individuals can be impacted by various factors including present income, prices, savings, debts, and access to credit.

Waitrose, a major UK retailer, has effectively maintained its market position and experienced strong demand for its products. This success can be attributed to several factors such as market growth, employment rates, inflation, exchange rates, interest rates, trade balance, and structural changes. Furthermore, socio-cultural influences also play a significant role in business. In today's society, individuals are increasingly embracing international perspectives and participating in diverse business endeavors.

They are changing their lifestyle. In the UK, in 1960, it was considered unnatural if a non-smoker complained about a tobacco user. By 1980, non-tobacco users became the majority and started to

be seen commonly in offices. In the 1990s, being a tobacco user became atypical. Now, it is considered anti-social and is prohibited on public transportation and in workplaces. A country's culture affects their home lifestyle and their behavior.

In the state of the UK, there is a rapid change in lifestyle and an unstable market. It focuses on various aspects including what people buy, who does the buying, and the overall form of consumer purchasing behavior. It also considers human rights, career expectations, employee motivation, growth of population, age distribution of population, and regional displacements in population.

Technology - factors

The technological advancements in the UK include spending on R;D, introducing new products and services, electronic point of sales, and online shopping. With the fast-paced technological progress, e-business is thriving simultaneously. The introduction of Fiber Optical, V-set installations, Radio Link, and Broadband has made them available in the UK. People are using online platforms to purchase their daily necessities.

Waitrose frequently expands their online shopping business, which is a major source of revenue for them. They prioritize offering high-quality products that meet customer demands and incorporate the latest upgrades from their distributors to anticipate future demand.

• Research and Development
• Computerise processing system
• Online Shopping
• Payment protection system
• Use of new Technology

Legal factors and SWOT analysis for Waitrose

The company must adhere to federal, state, and international environmental laws that regulate their use of substances and control emissions. These laws directly impact the development of their products. Waitrose is also obligated to meet air emission standards applicable to internal combustion engines.

In accordance with Robson's perspective, a SWOT analysis establishes the relationship between the internal and external

assessments in strategic analysis.

Analyzing the key environmental factors and internal strengths and weaknesses of the organization will help determine appropriate strategies for the company. The organization's strengths include solid global revenues, market standards and policies, market retention techniques, competitiveness, multi-brand differentiation strategy, strong government relationships, and the ability to attract highly qualified and motivated human resources. On the other hand, the organization faces weaknesses such as difficulty in budget and profit planning due to instability of foreign exchange rates and high production costs in Europe due to excessive tax deduction requirements in certain countries.

Opportunities