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Question: Discuss About The External Environment Analysis Management? Answer: Introduction JB Hi-Fi was built up in 1974 by Mr John Barbuto (JB), exchanging from a solitary store in East Keilor, Victoria. He had one straightforward reason to convey an authority scope of Hi-Fi and recorded music at Australia's most minimal costs. The business was in 1983 was sold out and by end of 1999 another nine stores were started. In July 2000 JB Hi-Fi was obtained by private value investors and senior administration with point of obtaining fruitful model broadly. JB Hi-Fi was drifted on the Australian Stock Exchange. These areas in present have changed over into JB Hi-Fi HOME stores, a place where anyone can discover all that you adore about JB in addition to additional. JB stores offer the internationally driving brands of Computers, Tablets, TVs, Cameras, Hi-Fi, Speakers, Car Sound, Home Theatre, Portable Audio and stacks more. All that you are after is accessible in one of our stores or on the web. JB Hi-Fi has occupied best brands, immense range, least expensive costs, helpful areas, however above all bona fide individual administration from our accomplished authority staff. External Environmental Analysis Theoretical analyses of JB HIFI based on major domains are discussed below: Technology Environment: The technology analysis defines what the company is offering through its product innovation. JB HIFI is innovating in its products from beginning (Garca-Pealvo, 2015). JBs strategy is to be always first in marketing with new technologies. With increasing threat to new consumer disposable electronic good JB has acquired The Good Guys to occupy foothold in home appliance space. Customer find easy to shop online for consumer goods that cost less. But people still prefer in shop purchasing for buying home goods like TVs, washing machine and many more. JB treats online store as extension of its physical outlets only hence making easy for customer to reach. For JB it is difficult to combat overseas retailer on price as people rarely order for international brand due to long shipping time and price (Wahl, 2017). Economic recession can effect technology environment, as economy will grow at slower rate than required hence less invention in products and services. Recession in economy makes tec hnological environment stagnant. And moreover high cost product in recession time also not preferred by people. Competitive Environment: Competition markets always deliver benefits an economy in a way that other market fail to do. Effective and healthy competition in market is a key to success. Innovation and investment in RD is increased due to competition. JB HIFI is using digital technology at higher level in order to improve their performance and competitive advantage (Lambert, 2017). JB HIFI is in a strong position to take benefit of opportunities in digital market due to connected and globalized economy. According to Hatch (2017) main competitor for JB is Amazon as its presence will reduce the market share of JBs due to Amazon competitive prices. JB presence will effect a huge if Amazon continues to attract its customer by its offers. There is high competition in firms as threats from competitors are present like competition pricing from Amazon, continuous innovation in technology by different competitors and many more. Recession affects competition amongst company as market is declining and no customer is ready for purchasing any product hence low sales. Economic Environment: Economic environment deals with national and international economic development and have impact on business directly. Economic environment factors are outside the control of business operations (Panayotou, 2016). Factors which affect the economic factors are unpredictability of exchange rate, tax incentive, business cycles and so on. Exchange rate affects the business widely; in case of JB HIFI it is difficult to fix any price internationally as prices fluctuates every moment in either direction. Interest rates: Interest rates are related to amount of money borrowed floating in economic system like loans to customers via credit card, home loans and so on. When bank lend out money to its customer at lower rate, then customers will be able to purchase more and vice versa. Economic recession: Economic recession can affect a company current market position. Due to recession JB products sales will be low, as JBs products is luxury product. Due to low earning capacity in recession people will go more for necessary item rather than luxury products. Hence recession will negatively affect the companys business. Labour Environment: Employment trends in Australia are different from world. They provide different levels of flexibility, stability, incentives and many more to employee. These trends have direct impact on business. Workers can be contractor or employee (Coulmont, Berthelot 2015). JB HIFI should consider which forms of employment suits the requirement of business and then deciding on which basis to recruit worker. Employment opportunities have increased across various industries, largest decrease is in retail trade down by 25000. Unemployment rate is same as in previous year. JB HIFI has high health and safety incident attached to it. JB HIFI is trying to mitigate this risk through appropriate occupational health and safety procedures making environment comfortable for employee to work. As JB HIFI is capital and labour intensive company means manufacturing and retailing so it requires highly qualified (skilled) employee for its machinery department and labour intensive (unskilled) for transporting products to stores (Niforou, 2015). Australia laws offers flexibility in employment hence making difficult for JB HIFI to retain employee for longer time. In recession time it is difficult to management more workers by JB HIFI so employee removal policy will be introduced if recession is longer than expected. Resource Environment: JB HIFI promotes environmental sustainability. To attain this JB HIFI manages its waste management policies which showing the practices adopted for disposing waste. Company has managed to attain flexibility in supply chain management by integrating the supply of goods from abroad and local suppliers (De and P, 2016). The JB HIFI is famous for real time tracking system that allows easy and timely availability of information required. JB mainly depends on abroad for raw material supply as it is available at lower price than local market. JB also maintains the lag of transportation time of raw material. It also maintains communication network between all of its workers for efficiency in supply of input material. JB HIFI faces difficulty in importing raw materials from other countries. JB has to take special permission and license from Australian government in specific format. Procurement of raw material internationally makes it of superior class and reducing local distribution channel. Due to recession it is difficult to import frequently as low supply of money within organisation. In recession time supply is huge but demand is low. So it is difficult to survive if recession is for longer time. Customer Environment: Improving online stores demands so many things but most important is demands of customer (Harwood Garry 2015). For maintaining online store to top JB HIFI should maintain factors like Value, open, Delivery, Speed, Ease, Range and choice to attract more customers. Value can be said as pricing strategy adopted by JB HIFI in its store to ensure more savings to customers. If price cannot be cheap than services offered should be best in competition to combat competition. Availability of stores by JB HIFI all-time whether online or offline also increases customer attention. It does not matter whether a customer purchases online or offline, products having estimating delivery time up to 5 days is served by JB HIFI. Customers in present world are very demanding so fulfilling all demand is major task for companies. Company like JB HIFI is taking all steps to remove all the barriers between customer and company. Segmentation in customer market is very diverse so fulfilling all segments demand is difficult for JB HIFI. In recession time the customer demand and requirements are lower than expected so it is easy in recession time to fulfil reduced demand with present products. Legal and Regulatory Environment: Consumer laws- The Australian Consumer Law (ACL) gives controls on unreasonable contract terms, customer rights ensures, item wellbeing laws, spontaneous buyer understandings, lay-by assertions and punishments, and different regions (Lieberman, et ol 2016). It safeguards customer of JB HIFI to get quality described and value for money. Product laws: Australia has a national statutory structure to control item wellbeing and data gauges. These measures are intended to guarantee unsafe items are not advertised in Australia. Thus creates difficulty for JB HIFI to cheat anywhere and making it a branded shop in Australia providing quality. The role of state and territory officers appointed is primarily to help customer. Environmental regulation- The Australian Government, state and domain governments, and nearby governments mutually oversee ecological security. Australian Government enactment oversees the procedure of evaluation and endorsement of national ecological and social concerns (OLeary, 2017). JB HIFI change in regulatory environment can increase compliance costs, and even affect the capability of group to sell certain products and services. Recession can affect a countrys law which will indirectly on companys existence. Like a firm can be asked for dissolution due to recession and lower availability of money. It can affect regulations and laws which were in existence before recession and can hinder the JB HIFI policies. Global Environment: According to Thomson (2016) numerous conventional retailers battle to contend with their online-just partners, JB Hi-Fi has at the end of the day exhibited it has picked up the certainty of Australian buyers, with a yearly report demonstrating it has the most grounded corporate notoriety in the nation. Effects of the 2016 Corporate Reputation Index demonstrated that JB Hi-Fi positioned most elevated among the 60 organizations measured, climbing two spots up from 2015. It is the second time in three years it has taken line respects in the Index; it beforehand positioned first in 2014 and was third general a year ago. Harvey Norman additionally observed a change expanding from 26th a year ago to rank twentieth general this year. Nonetheless, not all retailers indicated comparative change in the 2016 Index; one of JB Hi-Fi's rivals. The Good Guys, slipped from twelfth place in 2015 to rank sixteenth in general in 2016. It already positioned sixth in 2014. Recession can effect a company growth globally and can hamper the position obtained till now. So for a firm like JB HIFI the recession is a period which hinders its growth and sales internationally (Eaton, et ol 2016). Interpretation: Opportunities- Growing demand of customers gives an enterprise a huge opportunity to grow in market (Scott, Davis, 2015). By analysing on time the upcoming demand of customer JB HIFI can make long term success in future. New products launch can help JB HIFI can expand its business and diversify their customer base. As new products launches can influence new customer base to connect to JB HIFI. JB HIFI can enter into new emerging markets and expand their popularity. Threats- A major threat to JB HIF is behaviour change of customer towards its product. It can be due to presence of other competitor like Amazon. This threat can decrease its profit and popularity in market. Customer behaviour change cannot be predicted in advance, so no strategy can be formulated for this behaviour. A technological problem is also a threat to JB HIFI, as an error in technology or replenishment of product can move customer towards other competitors like Amazon. Price changes in products and services also hinder the growth of organisation, this happens due to competitive pricing policy of other competitors. As JB HIFI can face this threat if some other brand offers better technology in lesser price (Walton, Murphy Ryan, 2015). Conclusion The analysis of above factors shows that how domain factors affect the business existence. The effects of all domains are major on a business. The technology factor can make organisation products obsolete if new invention is launched. Economic environment discusses the changes due to national and international development affecting business. Competitive environment analyse the existence of its competitors in international and national as well. Labour environment analysis gives the availability of competent staff or labour, demands and facilities provided by government in a country to workforce. Resource environment analyse about the raw material or production facilities available with company. 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