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The shrinking world due to Globalisation

The world gets smaller day by day in conditions of business perspectives, communications, relationships, decision making etc. Globalization makes narrower to the people as well. Now-a-days the multinational companies are introducing their brand in globally with the variety of products and services. Companies are focusing the demographic issues and cultural barriers when they designed their products or service. With their prior concern about the management structure specially deal with public relation and government legislation like Import rules, duty and vat, customs' process while others related new company entry rules and licensing stuffs. For example, Unilever are spreading its products everywhere on earth, its popular beauty soap "Lux" is all over the place on the globe almost. The product colour and flavour are not exactly same as well. Beside bar soap they are actually more give attention to liquid soap with different flavour and colour. It is because of increasing competition in the market. In every minute one leading company's are struggling to keep their position on the market. Developing new strategy and approaches, cost minimization, making most of the business's resources.

Case study:

In uk Waitrose supermarket is one of the leading food retailers and for the grade of foods and services is renowned. Waitrose is a part of John Lewis partnership and Greenbee also it's another wing called name. John Lewis has 28 shops and one John Lewis at home. 69, 000 partners have in john Lewis (all staffs are called by partner) and the first profit scheme which called partnership was established in 1920. For best service and success of the organization, continuous improvement is very needed for the Partners because they're directly getting together with customers and facing noble situations. In John Lewis they involve some unique motivation key like increment, Partnership bonus and many kind of reward that motivate partners and management leading their team in great way and its effect we saw in '09 2009 due to financial crisis Waitrose did perfectly with no job cut. Yes there is some hour cut in branch as well as for that's why they faced some difficulty like, for a customer it was bit difficult to learn available staff in shop floor for help. Strong leadership, motivated hard working team and effective organizational culture is the key pillar to be Waitrose successful retailer in the united kingdom. In 1937 John Lewis partnership acquired Waitrose and in 1955opened first supermarket. In present Waitrose have 222 supermarkets, catalogue and an internet business in the UK as well as have branches in UAE. Partnership turnover was 6bn In 2009/10 report and second half of the year they increased their sales 11. 4%% and sales are 1. 3% reduced John Lewis. In Dubai 5137sq meter with 150 employees in Dubai mall operating with Spinney company. At November 2008 First Waitrose established in Dubai and around 2010 you will see open 20 more stores and also one in Bahrain will have by 2010.

Waitrose has today announced that it will open its first smaller format convenience store this summer as part of its plans to increase its presence in the UK's convenience sector. The to begin the new format stores, which will offer shops with sales areas which range from 2, 000-4, 000 sqft, will open in Fitzroy Street, Cambridge in early summer and create up to 40 new jobs. It will be the to begin four initial trials of the format planned for this year and can end up being the first Waitrose shop in its core estate to measure under 3, 000sqft. Small convenience shops can help the supermarket in bringing its brand to the 6. 5 million potential customers it has discovered who are currently unable to easily access Waitrose.

To read this above paragraph we can easily see that organizations are constantly changing day by day. Employees are afflicted by this change and need to adapt, learn new skills, knowledge in order to be able adapt and match the pace on the market. However, due to the changing of business climate and Technology Company should provide the complete knowledge and skills make a competent workforce. There are plenty of external factors which can be identified, which affect the working culture and environment of the business and in this case Waitrose. Here we look at the various external factors under various heads in the analysis such as Political, Legal, Socio-cultural, and Environmental.

Change facts:

Organizational change occurs whenever a company makes a transition from its current state for some desired future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to minimize employee resistance and cost to the business, while also maximizing the effectiveness of the change effort. And in addition contend with competition in the market.

Organizational change initiatives often arise out of problems faced by a company. In some instances, however, companies should change for other, more positive reasons. Change commonly occurs because the business encounters some difficulty, or sometime for additional efficiency with resources. But sometimes the most constructive change occurs not because of problems but because of opportunities. The Bateman, Thomas S. , and Carl P. Zeithaml (1990) used the term "performance gap" to spell it out the difference between a company's actual performance and the performance which it is capable. Recognition of a performance gap often supplies the impetus for change, as companies strive to improve their performance to expected levels. This sort of gap is also where many entrepreneurs find opportunities to begin new businesses.


World is getting smaller daily and almost everything is changing in this planet. Business is also affected by these changes. To meet up the government new legislation or develop their new product they can be changing their organizational system, characteristics structure and sometime business environment as well. To do these changes there's a lot of resistance and here we will analyse how to lessen this resistance. PESTL analyse and SWOT analyse is the easiest way to get this done analyse. "PESTL analysis makes the companies understandable about external environment where they may be operating their business plus they can establish their future plan" (Blery & Sfetsion, 2008). Alternatively to determine the relationship between the external and internal appraisals in strategic analysis we need SWOT analysis. SWOT analysing the main element factors of the environment and the fundamental internal strengths and weaknesses of the organization can help dictate the strategies appropriate to the firm.

PESTL Analysis on Waitrose:

It's very important for any organisation to give attention of there external environmental factor. External environmental analysis can help identify the direction of the industry and thus predict the near future. Waitrose could use PESTLE analysis as various benefits. It is great for Waitrose when used as a checklist, from when little deduction can be maid. It may allow the identification of key pressures and drivers of change. When Waitrose has workout which elements are most significant that are less and their differential impact may change over time.

(Ray Donnelly, 2000)


Law and political stability is the most frequent political issues. Law is vital for just about any business State. The Government is obviously changeable. All of the politicians come from different level so they may have indifferent views. They will create the Law using their company different views. So business industry will be damaged by that Law. For example in UK, 1996 they introduce a law about restriction of selling and marketing Knives. Australia also band automated weapon. Belarus obstructs to sell some foreign product. (Chee and Hassis, 1998).

It may as well include the legal aspect and is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. These laws may often create new opportunities for businesses.

Economical- factors:

Economic conditions have enormous implication for business strategy. The interface between the business and its financial environment are several. Economic factors impacts cost, consumer demand, financing option, raw materials availabilities, pricing and many more matters. (Roger Bennett 1999)

United Kingdom has very strong economical growth and high GDP trends. Bank Rate to raise towards 5. 75% by the finish of 2007, Interest futures in britain. The effective exchange rate for Sterling fell almost 2%, the growth of credit and broad money remained rapid. UK domestic products increased by 0. 7% then 2006.

Markets require purchasing power as well as people. The available purchasing power within an economy depends on current income, prices, savings, debts, and credit availability. Waitrose one of the biggest retailers in UK has were able to retain its competitiveness within the market and its demand for products has been high ever since.

Market expansion



Exchange Rates

Interest Rates

Trade balance

Structure and structural change

Socio-Cultural- factors:

A social issue can be an essential aspect for a company. Day by day people are become internationalists. Folks are involved with different business. They can be changing their life-style. UK in 1960 if any non-smoker gives complain against smoker its abnormal, in 1980 non- smoker were the majority and become common in office and in 1990 smoker was atypical. Now it is anti-social and prohibitten on public transport and workplace.

A countries culture effect on there residence lifestyle and there behaviour. UK is one of the united states where the life-style rapidly change it may cause for unstable market. It also targets:

What people buy

Who does the purchasing and

Overall pattern of consumer buying behaviour.

Human rights

Career Expectations of people

Employee Motivation

Growth of population

Age distribution of population

Regional shifts in population

Technology- factors:

Technology spends on R&D, innovating new product, new service, electronic point of sales; online shopping. As the technological advancement is going faster in UK the e-business is moving concurrently. Introducing the Fibber optical, V-set installation, Radio Link and Broadband can be purchased in UK. Individuals are using the online to buy their daily necessary. Very frequently Waitrose can expand their online shopping business where they earned their most of the revenue. Quality of product will take customer demanded as well as those products that gets the latest up-gradation from the distributors predicting its demand in forseeable future.

Research and Development

Computerise processing system

Online Shopping

Payment protection system

Use of new Technology

Legal factors:

The company is regulated by federal, state and international environmental laws governing their utilization of substances and control of emissions. These laws have a primary impact on the introduction of its products. The business must adhere to air emission standards which are applicable to internal combustion engines.

SWOAT analysis for Waitrose:

Robson believes that a SWOT analysis defines the partnership between your internal and external appraisals in strategic analysis. Analysing the key factors of the environment and the fundamental internal strengths and weaknesses of the organization can help dictate the strategies appropriate to the firm.


The firm's main strength is its solid revenues which are produced from its presence all over the world and help the organization to survive now and in future.

It has set out standards and policies which are being used to approach different markets appropriately. It also has ways to retain markets against its competitors.

It has were able to remain competitive on the market.

It has established a multi brand differentiation strategy which has accordingly been adopted to meet different needs in various countries.

It has maintained strong and steady relationship with the federal government.

Ability to control highly qualified and motivated human resources


Instability of foreign exchange rates makes planning of budgets and profits difficult.

It partcipates in heavy costs of production especially in Europe due to excessive tax deduction requirements in a few of the countries.

Product information website is not clear

Operation performance is poor

HR strategy is not to strong


The establishment of common business process and information systems permit the company to acquire data and making decisions for overseas markets easier.

Although, Waitrose is a recognised brand, its current procedure for innovation and development of services, indicates an instant growth in the best potential markets around the world.

Owner by John Lewes

Globally web business.

Marketing & sales

Outbound Logistic - Goods Issue


Fluctuations in foreign exchange rates mean a higher risk for the company.

Fluctuations in demands especially the increased demand in overseas markets make the look process more tough, and therefore a continuing price pressure arises from various markets.

Another threat is its rising labour and healthcare cost, owed to the increasing volume of employees doing work for the company.

Risk of strikes from trade unions and new country policies are another major threat to the organization.

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