In order to render the success of a business organization, an effective environmental analysis is highly significant that evaluates the possible opportunities and threats that the particular organization may have to face while running the entire business process. Dairy Farm is one of the largest pan-Asian retailers occupying a predominant lace in Singapore primarily. After staring their entire business process in 2016, this particular organization has appointed 180,000 employees for providing effective service process to the customers. Dairy Farm Group generally aims to operate supermarkets, hypermarkets, convenience stores, health and beauty stores and home furnishings stores under well-known brands. In addition, Dairy Farm Group is having 50% interest in Maxims that is one of the most leading restaurants of Hong Kong (dairyfarmgroup.com, 2017).
However, before operating the supermarket as well as hypermarket chain the organizational managers have to conduct an effective environmental analysis as well as industry analysis in order to evaluate the current environmental scenario of Singapore for maintaining retail business organization. This particular study has provided an in-depth overview on how a specific business organization before implementing necessary organizational plans and policies tends to make an effective environmental analysis. In order to get an in-depth overview about the industry of retail sectors this particular study has conducted Porter’s Five Forces analysis. Based on the political as well as economic environment of Dairy Farm Group, this study has implemented business strategy and policy effectively in the market (dairyfarmgroup.com, 2017).
|
Political |
Ø In the late 1980, Singapore was single party state. At that particular time, the business organizations had to follow the government rules and regulations strictly while running their entire wings. Currently, the scenario has been changed somehow. After the emergence of opposition parties the business organizations do not have to follow the regulation of particular political parties. The rate of cultural biasness has been decreased somehow (Ramadan & Gijs, 2012). The organization like Dairy Farm Group by maintaining all the government rules and regulations like to expand their supermarket chain in different geographical locations. On the other hand, as per the political scenario, Singapore is devoid of mere political conflicts. As a result, customers do not have to struggle while purchasing the products as well as services from Dairy Farm Group. |
|
Economic |
Ø It is undeniable that Singapore is economically developed country. In the year 1960, Singapore government initiated a large successful program in order to promote industrial investment from its local and foreign market. Being developed in economy however, this particular organization such as Dairy Farm Group has decided to implement moderate and premium prices in their product for drawing the attention of both low cost customers as well as middle cost customers. On the other hand, the target customers of Dairy Farm Group being developed in economy can easily afford the products and services of this particular organization without having any kind of difficulties. Therefore, based on the economic status the organization intends to fix their product price for drawing the attention of target customers. |
|
Social |
Ø In Asia people belonging from different socio-cultural beliefs and attitudes live together. Therefore, the organization like Dairy Farm Group like to design their products in such a way that customers from various cultural backgrounds can show their interest in purchasing the products of Dairy Farm Group. In addition, the customers service providers of Dairy Farm Group are flexible enough to entertain the people from different religious backgrounds (Dente, 2013). As a result, the number of target market of Dairy Farm Group is automatically high. |
|
Technological |
Ø Singapore being out an out developed country is very much advanced in technology. The inhabitants of Singapore are very much accustomed with advanced technology. Therefore, the business experts of Dairy Farm Group while communicating with the customers tend to use internet accessibility for making the interaction more effective. Implementation of technology in operation process, supply chain management, financial analysis, marketing and promotional activities are highly important for making the entire process of business faster. |
|
Environmental |
Ø The ministry of environment in Singapore has vested environmental responsibility in order to protect air pollution as well as other environmental pollution (Man et al. 2014). Due to the effective initiative taken by Singapore government, the business organization like Dairy Farm Group does not have to face difficulties in running their entire process of business successfully. The customer rate of Dairy Farm Group has been maintained due to effective environmental structure of Singapore. |
|
Legal |
Ø While maintaining the overall business process the organization like Dairy Farm Group has to maintain necessary tax policies for maintaining a good rapport with government. As per the current business strategy and policy of Dairy Farm Group, the business experts like to maintain some of the major rules and regulations at the workplace as well for maintaining good rapport with the stakeholders. The legislations and acts include health and safety act, right to information act, data protection act, anti-discrimination act and so many. |
Table 1: PESTEL Analysis of Dairy Farm Group
(Source: Dixon et al. 2013)
Figure 1: PESTEL Analysis of Dairy Farm Group
(Source: Bennett & Chorley, 2015)
Suppliers’ power:
The suppliers’ power in the retail industry of Singapore is low. Large number of retail organizations has already occupied a predominant place in the realm of Singapore. Therefore, the suppliers do not have sufficient scope to bargain with the purchaser due the excessive availability of retail organizations in Singapore (Dunn, 2012). As per the supplier’s power Dairy Farm Group has decided to use low cost strategy for drawing the attention of customers from different geographical markets.
Buyers’ power:
Buyer’s power in the retail industry of Singapore is high due to excessive availability of retail organizations in the market. In the current business environment of Singapore large number of business experts has launched their retail sector in the soil of Singapore. People belonging to different geographical boundaries have ample options of bargaining the products and purchasing the services in affordable price range (Li et al., 2012). Therefore, the organization like Dairy Farm Group before implementing necessary business strategy and policy has focused on low cost price range in maintaining superior quality of products.
Threat of new market entry:
While establishing their entire business in the soil of Singapore, Dairy Farm Group had to face innumerable difficulties in gaining brand identity and brand image. Some of the most effective competitors in retail business at that time such as ETP Group, SRA, Elush Retail have already expanded their wings in the market of Singapore (Lokhorst et al., 2013). In this kind of situation, Dairy Farm Group has to face innumerable trouble to draw the attention of customers. After facing a major threat while entering new in the market Dairy Farm Group has decided to focus on product and service innovation. As a result, the customers have showed their interest in using the services of Dairy Farm Group.
Threat from the substitute:
The emergence of FMCG industry in the market of Singapore has become a major cause of concern for retail business organization like Dairy Farm Group. The companies like Uniliver have rendered those products in the market which are available in retail counters. In this kind of situation, Dairy Farm Group has to face innumerable difficulties in drawing the attention of customers. In order to overcome this kind of situation, Dairy Farm Group has decided to implement some of the major business strategies and policies (Nanaki & Koroneos, 2013). The organization such as Dairy Farm Group has implemented product variety in the retail counter in order to fulfill the needs and desires of customers. The product mangers of Dairy Farm Group have designed the product in such in such a way that customers from different psychological backgrounds and attitudes can easily purchase.
Competitor’s rivalry:
It has already been mentioned that Dairy Farm Group has already faced a major threat from some of its recognizable competitors such as ETP Group, SRA, Elush Retail. The business executives of Dairy Farm Group have conducted an effective market survey in order to collect the current needs and demands of the customers as well as the competitors’ current market strategy and policy (He, Zha & Li, 2013). After evaluating the competitors’ current market strategy, Dairy Farm Group has analyzed that other competitors such as ETP Group, SRA, Elush Retail put sufficient effort in their business promotion to gain the brand identity as well as brand image. In order to become a major threat for its competitors, Dairy Farm Group has decided to use the tool of social media for maintaining the business promotional activity more effectively. At the same time, the social media pages would help Dairy Farm Group to introduce their products and services in front of the global market as well.
Figure 2: Porter’s Five Forces
(Source: Brown, 2012)
After conducting an effective industry analysis as well as environmental analysis some of the major recommendations can be provided:
Market survey for gathering data regarding the competitors’ market strategy and policy:
Before implementing business strategy and policy the marketing executives have to collect necessary information regarding the needs and demands of customers. At the same time, competitors market strategy and their analysis is also very important with the help of which the business experts can implement necessary plans (Knights & Willmott, 2016). After evaluating the competitors’ market strategy, the business experts of Dairy Farm Group have decided to invest large amount of money in the promotional activities in order to expand the entire process of business in different geographical areas. At the same time, the social media tools enable in introducing the products in the mind of global customers as well.
Using promotional activities more effectively:
Business promotion is one of the most effective tools with the help of which the customers can get an in-depth overview about the reliability of products and services before purchasing it. Promotional practices can influence the customers’ purchasing behavior as well. Dairy Farm Group while promoting their business could use electronic media as well for drawing the attention of different age group of people (Grant, 2016). However, it can be recommended to use social media tool with the help of which customers from different geographical markets can be attracted in purchasing the products and services of Dairy Farm Group.
Equal treatment to the customers of every religious background:
Customers belonging to different geographical boundaries would have to be treated with equal respect and dignity (Andersen & Mostue, 2012). As a result, the number of target customers will be increased gradually. It has been observed that customers who are having language barriers are deprived of effective service process from the customer service executives of Dairy Farm Group. In this kind of situation, the business managers should provide an effective training to the customer service executives so that they can deal with every single customer effectively in the market (Fleischmann et al., 201). Customers should not be distinguished as per their religious and psychological attitudes. Organizations like Dairy Farm Group should follow diverse culture at the workplace. As a per the attitude of diverse cultures and beliefs, people belonging to every single background should be treated with equal respect and dignity.
Conclusion:
An environmental factor varies from one geographical boundary to another. Business organizations while dealing with the customers would have to focus on their needs and demands. Based on the environment factors as well as industry desires, the business organizations have to set their aims and objectives. This particular study had provided detailed overview on how the political, environmental, social, technological and legal factors highly affect in making business policies and strategies. Dairy Farm Group is one of the most prestigious retail organizations existing in Asia.
This particular organization has implemented advanced technology within the business in order to make the entire operational process faster. Before, implementing technological devices within the business process of Dairy Farm Group, the organization has decided to make an effective PESTEL analysis for evaluating the technological factors of Singapore. On the other hand, the primary purpose of conducting Porter’s Five Force analysis is to evaluate the scope of retail business in the environment of Singapore. After analyzing the five chronological factors of Porter’s Five Forces, the study has evaluated on how the business organization like Dairy Farm Group has planned their aims and objectives for fulfilling the needs and demands of customers.
References
Andersen, S., & Mostue, B. A. (2012). Risk analysis and risk management approaches applied to the petroleum industry and their applicability to IO concepts. Safety Science, 50(10), 2010-2019.
Bennett, R. J., & Chorley, R. J. (2015). Environmental systems: philosophy, analysis and control. Princeton University Press.
Brown, R. (2012). Analysis of investments & management of portfolios.
dairyfarmgroup.com., (2017). Dairy Farm International Holdings Limited – Home. (2017). Dairyfarmgroup.com. Retrieved 11 June 2017, from https://www.dairyfarmgroup.com
Dente, B. (Ed.). (2013). Environmental policy in search of new instruments (Vol. 3). Springer Science & Business Media.
Dixon, J., Scura, L., Carpenter, R., & Sherman, P. (2013). Economic analysis of environmental impacts. Routledge.
Dunn, P. J. (2012). The importance of green chemistry in process research and development. Chemical Society Reviews, 41(4), 1452-1461.
Fleischmann, A., Schmidt, W., Stary, C., Obermeier, S., & Brger, E. (2014). Subject-oriented business process management. Springer Publishing Company, Incorporated.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case study in the pizza industry. International Journal of Information Management, 33(3), 464-472.
Knights, D., & Willmott, H. (Eds.). (2016). Labour process theory. Springer.
Li, X., Wang, Y., Yang, X., Chen, J., Fu, H., & Cheng, T. (2012). Conducting polymers in environmental analysis. TrAC Trends in Analytical Chemistry, 39, 163-179.
Lokhorst, A. M., Werner, C., Staats, H., van Dijk, E., & Gale, J. L. (2013). Commitment and behavior change: A meta-analysis and critical review of commitment-making strategies in environmental research. Environment and behavior, 45(1), 3-34.
Man, Y., Yang, S., Xiang, D., Li, X., & Qian, Y. (2014). Environmental impact and techno-economic analysis of the coal gasification process with/without CO 2 capture. Journal of Cleaner Production, 71, 59-66.
Nanaki, E. A., & Koroneos, C. J. (2013). Comparative economic and environmental analysis of conventional, hybrid and electric vehicles–the case study of Greece. Journal of Cleaner Production, 53, 261-266.
Ramadan, Q., & Gijs, M. A. (2012). Microfluidic applications of functionalized magnetic particles for environmental analysis: focus on waterborne pathogen detection. Microfluidics and nanofluidics, 13(4), 529-542.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download