Strategic Management Assignment Example | Topics and Well Written Essays - 2500 words - 1

Strategic Management - Assignment Exampleking from both home(a) and external influences, explains strategies used by Davies in launching this new line of work, and proposes recommendations about whether this new launch fag provide a return on the investment.The PEST Analysis, as part of environmental scanning, provides an opportunity to mantrap the different external conditions that influence decision-making. This model recognises governmental, economic, social and technological forces that leave behind determine a fast(a)s adaptability to external trends. From the political view, Davies new business intends to launch 25 stores. Success domestically will determine whether to take this brand international and strategy could be impacted by different tax income or tariffs on imported products, cutting into the profit margin. Depending on the country where Davies might export his goods, political forces can determine speed of new grocery entry or regulate volume be delivered.The economic environment plays a considerable role in how a business develops strategy. Where this new line will be introduced, the UK, there is a current recession that impacts consumers at all different levels and market segments. In response to consumers slowing their purchases, especially in retail, high-end companies like Versace have stopped production on five different product lines in lower-priced ranges since they were not showing signs of profitability (Choi, 2009). Further, Tiffany closed its business management on Iridesse pearl jewelry to focus on diamonds due to sales slumps (Choi). This illustrates how the economic environment drives companies to contour their product lines or enhance their sales focus on higher-profiting products. Spending patterns in consumer groups can strongly impact strategic direction, especially at the operational level like at Versace.Social trends, overly external, impact how a company conducts business in a certain environment. A recent ey eshot of citizens in Asia identified that Asians tend to worry about