The paper "Marketing Analysis of Matalan in Saudi Arabia" is a great example of a marketing case study. Matalan is a British company that largely specializes in fashion and homeware. The company was founded in 1985 by John Hargreaves. Since then, it has opened numerous stores throughout the United Kingdom. The company has chosen outside the town as the ideal location for its stores. In addition to the UK, Matalan has opened stores overseas, in countries such as UAE, Jordan and Saudi Arabia. For the purpose of this report, the focus will be on Matalan as a fashion dealer.
The objective of this report is to critically assess the global macro-environmental factors that are most likely to influence the company’ s operation. The report will also evaluate the development of a marketing information system. 1.1MACRO ENVIRONMENTAL VARIABLES According to Mead (1988:67) Macro, environmental factors refer to external forces that cannot be influenced by the operations of the company. These factors have an indirect impact on the company and can affect the company’ s operations either positively or negatively. The company has to take these factors into consideration when carrying out ecological scanning.
This will aid the company to understand the threats and opportunities presented by these factors and how to modify its premeditated plans in order to secure a competitive benefit. These variables include economic, social-cultural, changes in technology, international and political-legal factors. Economic changes Economic factors are the characteristics and directions of the system of the economy within which the company operates. They include population income distribution, payment balance and government financial policies. The influence of these factors varies depending on the industry. In the clothing industry, these factors can affect their present operations as well as future planning.
During periods of economic downturn, the company will suffer low profits, low rates of production, decreased productivity and hiring. Consequently, the company will benefit in various ways, decrease in wastage, more practical perceptions of the working environment, the exit of some companies and a more proficient arrangement Mead (1988:49). During a thriving economy, people’ s income levels increase. Clothing manufacturers will experience increased sales since people will purchase more clothing. The profit levels and the rate of production will also increase.
The company may increase the price of the product without losing potential customers Nolan (1999:67). Technological changes Technological changes are inevitable in any society and business companies need to consider them during their strategic planning. These changes may influence the demand for a company’ s products, processes involved in production and access to required raw materials. Many companies are able to market their products online through the internet due to new computer technologies. This has led to high demand for certain products since the products are accessible to many potential customers. Technology can make a company get rid of some products from the market.
For instance, the invention of new clothing styles will shift the demand from the outdated one. New products require new methods of production as well as equipment. For instance, if a clothing company installs robots, human workers will be displaced. The company will not only incur installation costs but will have to train its workers on how to operate the complex machinery. Technological changes, therefore, presents both opportunities as well as threats to an organization Theodore (1983:78).
Mead, R. (1988) International Management: Cross-Cultural Dimensions. Cambridge, MA: Blackwell,
Nolan, W. (1999) Communicating and Adapting Across Cultures: Living and Working in the
Global Village London: Bergin & Garvey,
Theodore, L. (1983) The Globalization of Markets , London: Roydon