P4 Indentify the competitive factors in the retail environment a selected business faces

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Unit 29 p4

In this assignment I will explain how the retail sector response to internal and external change. I will also use a retail company to give example. The retail outlet is Batavia Stad.

Retailers have no control over their external influence; this would call the macro environmental factors. Under this factor includes:

  • Changes in consumer and business confidence
  • Changes in the housing market
  • Developments in the employment levels

Retailers may become successful once they look forward to these influences and react on them consequently. However, external factors should not be ignored as they pose a threat to the long term survival of an organization. A retailer macro environment could be affected by the following:

  • Changes consumers taste
  • Rapidly changing market
  • Increase in competition

Therefore, in order to stay competitive and up to date with the macro environment , is to conduct a PESTLE analysis.  

The role of Government :

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There are many different government policies that could potentially affect Batavia Stad. One of those is fuel duty, if fuel duty is raised then it may mean that less people will choose to visit by car, since it is not seen as value for money. So people may choose to visit city shopping centres such that is closer by and more accessible along the motorway. If the Government raised VAT it would probably mean that people would buy less, because they have less value for the money, so Batavia Stad will  make fewer sales  because no one will one to ...

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