The paper “ Elements of the General Environment That Apply to the Bookshop Business” is a thrilling version of a case study on marketing. The business environment is highly dynamic and is likely to be affected by a great variety of environmental factors. Accordingly, a business must be in a position to adapt to the effects of the environment in order to enhance profitability. In starting my business, the general environmental factors are likely to affect my business in the following ways: CompetitionThe effect of the competition is highly apparent and is expected to affect my business to a great extent.
Competition is expected both locally and internationally such that I must devise ways of making my bookshop stand out among competitors (Frank, 2006, p. 291). There are several bookshops in my area and these are a source of competition for my business. Aspects of competition include a wider variety of books, more favorable prices and favorable vicinity such that they are likely to attract more customers. The sale of second-hand books is also bound to be a source of competition. A competition aspect that is becoming increasingly popular is online trading which in most circumstances offers better prices to customers.
Examples of online bookstores include AMACOM, BetterWorldBooks, Kalahari, Books-A-Million Inc, Dymocks Booksellers, Half Price Books, Book site, Books Now and Powell’ s Books among others, all which may affect the popularity of my business. The issue of online goods has attracted a major controversy with business owners increasingly calling on the government to levy a tax on such goods in order to minimize competition. According to Harvey Norman’ s CEO, Gerry Harvey, overseas online traders were placing local retailers at a disadvantage because they provided goods at lower prices (WAtoday, 2010).
This was attributed to the fact that goods under $1000 bought online from overseas do not attract duty. He, therefore, called on the government to levy a goods and services tax to such commodities as witnessed in other countries. The challenge identified by Harvey presents one of the general environmental factors that are likely to affect the bookshop. As more people become technologically savvy, it is highly probable that online shopping is bound to increase vehemently, which would thus threaten the continuity of my bookshop. Legal factorsThe legal factors in the business environment are bound to affect business operations significantly.
This is because a business must comply with the legal and regulatory standards as provided in the country’ s constitution (Alewa, 2006, p. 548-549; Davidson and Griffin, 2009). In setting up my bookshop, therefore, I would need to ensure that the business complies with all Australian business legal requirements. Before setting up the bookshop, I would be required to register the business name in my State. This may cost about $150, which is usable for 3 years.
I would also need to acquire an Australian Business Number and obtain a Tax File Number (TFN) to facilitate the payment of tax from the Australian Tax Office (Tax Laws, 2007, p. 58). It is imperative that the name used in registering a business has not been used by any other business in the country (Claydon-Platt, 2010). Other legal issues that are bound to affect the business include price controls, payment of tax, registration renewal, consumer protection laws and ethical issues that the state expects a business to observe.