Site Loader
Rock Street, San Francisco

PESTLE ANALYSISThe term was coined by a professor of Harvard named Francis Aguilar in 1967 and is mentioned as “ETPS” in his book named as “Scanning the Business Environment”. The name was altered later and is now used as “PESTLE Analysis”. This is acronym of Political, Economic, Social, Technological, Legal and Environmental factorsIn this Scenario of LK Business Supplies and acquisition of Chuck Wentworth, this tool will help in analysis of following factors.Economic FactorSocial FactorTechnological FactorEconomic FactorSince the business provides general office supplies, it has good rate of future growth. The investment of Mr. Chuck Wentworth can increase the dimensions of business from sole supplies to services as well. As there are many startup ventures arising, it gives good opportunity for such business to expand their dimension of business. As these startups are short of capital and do not invest whole lot of capital in machineries, the office supplies including machines can be provided on rental business.Social FactorSince the business has been established for past 08 years already and has good number of clients previously, it has social advantage of clients networking already. Also the unfortunate demise of Sam Millwood and retirement of Mr. Walt Millwood has made a sentimental sympathetic value for the business.Technological Factor Due to enormous ways of use of technology, it has paved good road for the investment in business as it is cost-effective and brings in good number of clientele and reduces the cost incurred. Online presence on different social media platforms, email marketing and online communications like live chat gives good opportunities for expansion of business and profit maximization.Future TrendsAfter acquisition of the existing entity by the new Owner following trends are expected to take turn.Market Segment ExpansionWeb appealE-commerceEngaging an untapped area Market Segment ExpansionAs Mr. Chuck is investing large sum of money, it will provide leads for expansion of company’s operations locally. It will increase its client base and expand the current market segment thus resulting in increased business opportunities.Web appealWeb presence of business increases opportunities for engaging the consumer base. It furnishes more power to the entrepreneur regarding the establishment of portfolio of the services and products that are provided by the business. This will help in internet presence and harness opportunities for bringing new customer base. Presence on web through website, social media and blogs will make the business of Mr. Chuck available on the click to the consumer E-commerceWith increase in use of online shopping, E-commerce plays great role in bringing business to the venture. With increase in development of technology Mobile commerce is also on the rise. A person can check the desired products on the go thus saving time and maximizing the resources and use of time. Mr. Chuck can get an online shopping cart to make the customer do business in the comfort of his lick.Engaging an untapped area By using modern ways of business, Mr. Chuck can attract and engage the market segment that was previously untapped. These tools will help Mr. Chuck brining in the new client base which in return will give new resources for brining the new services along with the current business.Key ProblemsAfter acquisition by Mr. Chuck, some of the key problems might arrive. A list of some common problems is stated below.Shaken trust of existing client Lack of Skilled Human ResourceResistance from current workforceIntroducing modern ways Rivalry by Previous OwnerShaken trust of existing client When the business is taken over by new management, current client base’s trust is shaken as they expect the terms and conditions will remain same as it was agreed upon. Also they are in doubt about the quality of services provided. Convincing the client about the change of terms and conditions, maintaining the quality of services and decisions of new management will be the foremost challenge faced by the Mr. Chuck.Lack of Skilled Human ResourceLack of skilled human resource will be another challenge as the targets assigned and future trends will need a skilled force to maintain and face the demanding set of challenges. Also demanding needs of market expansion require a ready set of skills to tackle the demands of market.Resistance from current workforceMr. Chuck may face resistance from the current workforce regarding implementation of new policies and procedures. Current employees may resist the decisions of new management in embracing the changes. Lack of co-operation and resistance may result hindrance in running of smooth operations of day to day affairs. Increase in expensesIntroduction of new technology will result in incurring cost of Training and Development. It will result in investment of resources and time to polish the skill set of current workforce. Also it will intend the recruitment of skilled staff and increase head count which will also increase the payroll head of the organization.Resistance from Client BaseCurrent client base may also resist the modes of business done by Mr. Chuck in embracing the modern ways of doing business. Some clients will find it difficult in coping the new ways and SOP’s set by new management. Also induction of new technology may not be appreciated and welcomed by the consumers. Intra Market Competition Competition is always the driving force which brings on innovation and new ways to bring the best in one’s services and products. But it also brings threat if the business does not adopt modern ways. If Mr. Chuck does not embrace the modern ways he will be taken down by his competitors in intra market.

Post Author: admin


I'm Dora!

Would you like to get a custom essay? How about receiving a customized one?

Check it out