The paper "Human Resource Management Strategy" Is a great example of a Management Case Study. The external analysis for Pep Stores will help to understand the manner the external environment influences the company and in so all company performing in a particular industry. This analysis will help to understand the importance of combating the external forces in a manner that helps them to gain efficiency and also help Pep Store to prepare a strategy based on it that will help them to maximize the opportunities for growth and minimize the threats the business faces. Industry Information Pep Stores performs in the retail sector where they look towards providing products to the customer at the most competitive rates.
The company follows a business model of supplying goods at the best possible rate which has thereby increased the level of competition and made service an important component of the business. Pep Stores looks towards ensuring that they provide the customers with quality products and is part of the organized retail sector looking towards conducting business. This has thereby made Pep Stores look towards customers who visit the shopping places and look towards providing customers products based on quality and competitive pricing. PESTEL Analysis This aspect of the report concentrates on the manner the surrounding environment is influencing the working of Pep Stores thereby making it important that a strategy is crafted which will help the organization to face the contingencies and deal with the surrounding environment in a manner that helps to achieve maximum efficiency and achievement of the objectives (Chew, Cheng & Petrovic-Lazarevic, 2006). Political The change in the political front has affected the manner in which Pep Stores carried out business in South Africa.
The abolition of apartheid and voting rights being granted to the blacks has affected the manner in which business was carried out and has provided more avenues as the democratic form of government has looked to draft supportive policies. This has been adversely affected by the rise in terrorism activity after September 11 which has made the economy to monitor the way business is conducted so that money doesn’ t flow into the hands of terrorist which could hamper the stability in the economy hence have an effect on the working of the organization.
Also, the fact that the government has looked towards opening the economies and allow investment from abroad has intensified competition thereby making organizations work in the best possible manner and deliver quality services to the customers (Chew, Cheng & Petrovic-Lazarevic, 2006) Economic The slow down in the economy has hampered the progress of Pep Stores as the purchasing power has been affected. Recessionary conditions have depleted the purchasing power thereby making people postpone their consumption of goods and services and looking forwards to saving for the future.
This has further been affected by the rising inflation rate which has further eaten on the income of consumers and increased job losses thereby affecting the manner in which business was conducted. This has gradually swept the prevailing condition in the economy and has affected the growth of the business as economies have been hit by the present condition thereby decreasing the volume of business (Chew, Cheng & Petrovic-Lazarevic, 2006)
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