Small Business Eterprise

Topics: Strategic management, Management, Marketing Pages: 12 (3074 words) Published: October 18, 2014


Table of Content

Task 1
1.1 PESTEL analysis of Lula’s Convenient Store
1.2 Comparative Measures
1.3 SWOT analysis of Lula’s Convenient Store
1.4 Ratio Analysis

Task 2
2.1 Overcoming Business Weaknesses
2.2 Maintaining and Strengthening Existing Business
2.3 New Opportunities
2.4 Evaluation of Management and personnel

Task 3
3.1 Business Objectives
3.2 Business Plans

Task 4
4.1 Impact of Change
4.2 Management of change

Task 1
1.1 PESTEL analysis of Lula’s Convenient Store

PESTEL analysis used as tool of marketing to help businesses to define external factors that may impact business performance. Abbreviation of PESTEL stands for: Political, Economical, Social, Technological, Ecological and Legal. As can be seen all those factors come from outside of the business and cannot be controlled by business. Only options organizations have in terms of coping with PESTEL are to adjust business with external factors. (Easterby, 1998) Next summary will evaluate how Lula’s convenient store copes or adapts to external factors in its present state. Political Factor- this factor represents political environment in the area of business and how uncertainties or unstable environment can influence business. If there is riots or government issues it is difficult for business to have stable operations. This kind of uncertainty of political factor may bring a big risk to the businesses in that area. But as can bee seen from business plan there is no mention of any uncertain of problematic political issues in the are of Lula’s convenient store. Which makes it politically safe to operate in Henniville. Social Factor- this factor considers age, race, religion and cultural preferences of the people in the area where business operates. It is important that business activity chosen is in line with those factors and do not operate against them. According to Segmentation analysis on the business plan of Lula’s store it has to be said that preferences of the cultural and social layers of the external environment was considered by business. It also has to be mention that Lulas’s convenient store uses this external information to its advantage in market segmentation. Economical Factor- this factor considers economic stability in the are of the business and its well-being. Only healthy economy can guarantee business survival and growth. It is important that economy has to be stable and can allow planning in long terms. Lula’s convenient store analyzed its economical background and was able to define not only its stability but also the income of its potential customers. This allows Lula’s convenient store to relay on economical stableness in the area of business operations. Technological Factor- this factor concerns technological advance of the business and its background. It is important that the business has as advanced technology as its external environment. It will help businesses operate with help of the technology and understanding of the expectation of outside market. In terms of Lula’s store it is not mentioned what would be technological advancement for the business. But it would be recommended that café provided by Lula’s would have a Wi-Fi services and would engage future consumers to spend more time in there. It also would be recommended to open web site. And lastly all technology such as tills and card machines in store has to be on high tech based as required by modern level. (Easterby, 1998) Ecological Factor- this factor evaluates eco friendly approach to the nature and how current businesses seek for competitive advantage to gain this factor. Ecological impact on the business can be associated with friendliness of the business to ecology and how it will reflect on customer preferences. Many organizations nowadays are operating in eco friendly way and defining “green” ways to do business. It terms of Lula’s convenient store it was mentioned in business plan that convenient...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Describe the Social Implications of Business Ethics Facing a Selected Business in Its Different Areas of Activity Essay
  • Small Business Essay
  • Small Business vs Big Business Essay
  • Small Business Enterprise Essay
  • Starting A Small Business Essay
  • Economic Contributions of Small Business Essay
  • STRATEGIC PLANNING FOR SMALL BUSINESS Essay
  • Essay on Small Business Failure

Become a StudyMode Member

Sign Up - It's Free