THE WORLD ECONOMY

The World Economy: Waitrose

The World Economy: Waitrose

Marketing Mix: Waitrose

Key factors in Waitrose's environment

There are many internal and external factors within the Waitrose ? which affect the working culture and environment of the company. The Waitrose business environment may be visualise in terms of layers ? beginning with the instant internal environment within the organisation ? and moving outwards to the external environment surrounding the business and influencing its organisation and operations. The external environment includes an array of dimensions ? including political ? economic ? social ? technological ? environmental and legal factors. (Solomon 1999)

Layers of the business environment

Both the internal and external environments reflect the strategic changes with respect to changing circumstances within the Waitrose organisation. The analysis of the external environment can be analysed by PESTEL framework ? which categorises environmental influences into six main types: political ? economic ? social ? technological ? environmental and legal. This is also known as 'environmental scanning'. The PESTEL is a useful strategic tool for understanding market growth ? decline ? business position and potential operations which affect the organisation over the long term. The results obtained can be used and implemented to take advantage of opportunities and to make possibility plans for threats when preparing business and strategic plans within the Waitrose organisation. (Hanson 2000)

Macro-environment

PEST

Political

Economic

GM-Food

Planning Policy Guidance (PPG)*

Competition Commission**

EU Competition Law***

2001 Market value: 103.4£bn

Relative Recession proof industry

Socio Cultural

Technological

Organics and healthy eating

Eating out & take-away

Environmental conscious

>¾ of shoppers travel by car

Communication/ IT

Supply Chain Optimization

Transport/ Cool Storage

Bar Code/ Stock Management

Foreign trade policy: Waitrose outsourcers its citrus fruits from South Africa. The Waitrose will have to pay an import duty in order to export the goods.

Taxation: The Waitrose is imposed taxes on its business profit and over selling the goods to its customer. This can even affect its strategic plan if there is a fluctuation.

Social policy: Waitrose adopts its social responsibility through diversity. (Campbell 2002)

Planning policy: The planning policy is operated from government or local authority. Waitrose future expansion of its shore and expansion of its existence business needs planning ? which is regulated by authority.

EU law (Competition): The recent expansion of the European Union can effect Waitrose e.g. Entry of new competitors or products ? which they may offer at cheap price (the minimum wage is some EU countries have low wage compare to U.K)Economic Unemployment: Waitrose aims to proved employment in regeneration area. More than 8000 employees in South Africa have been employed by Waitrose. (Kleindl 2001)

Interest rates: This depends on the level of borrowing to the business needs at Waitrose Globalisation: Waitrose is expanding its business and suppliers through the world. It trades with more than 80 countries.

Socio-culturalSocial & cultural values: Waitrose have implemented social & cultural values in its organisation.

Training: Waitrose provides training to its employees to update there knowledge to fulfil its business. Its also provides essential training to its suppliers in order to trade business in safe manner.

Organic food supply: Waitrose was the first to sell organic food to its customers in the U.K Environment awareness: ...