Woolworths- market analysis
Section A
Question 1
1.1 There are six components of the macro environment:
1. Political environment
2. Economic environment
3. Social environment
4. Technological environment
5. Legal environment
6. Environmental environment
The above components have affected Johnson Matthey as follows:
1.1.1 Political environmental factors
Johnson Matthey is a globally operated organisation, having operations in more than 30 countries. Therefore alterations in the laws and taxes in the countries of operation may affect the businesses strategies.
In one example identified in Johnson Matthey’s case study the law has been to his advantage as, ‘Tax credits are given to businesses that invest in research and development to create new products and techniques, many of which can be exported around the world” therefore with Johnson Matthew’s highly skilled research and development team constantly analysing and improving the products provides a good advantage for the company as they gain tax credits which may allow them to sue the surplus money on more research.
The environmental law set by government to control and decrease air pollution has the ability to benefit Johnson Matthey company’s sales of catalytic converters, as there may be an increased demand by other companies to buy the product in order to abide by the new law of less pollution.
1.1.2 Environmental Factors
The three main economic factors which affected Johnson Matthey’s operations were:
1.1.2.1 2008 Banking Crisis – Global Recession
The recession lead to a decreased demand for Johnson Matthey’s product. He needed to reduce the cost of production by increasing the efficiency within the company, by using less natural resources as well as minimising the waste by conducting lean production techniques (Johnson Matthey’s case study). These efficiencies increased the sustainability of the company which also saved the company money and at the same time conserving the planets natural
Question 1
1.1 There are six components of the macro environment:
1. Political environment
2. Economic environment
3. Social environment
4. Technological environment
5. Legal environment
6. Environmental environment
The above components have affected Johnson Matthey as follows:
1.1.1 Political environmental factors
Johnson Matthey is a globally operated organisation, having operations in more than 30 countries. Therefore alterations in the laws and taxes in the countries of operation may affect the businesses strategies.
In one example identified in Johnson Matthey’s case study the law has been to his advantage as, ‘Tax credits are given to businesses that invest in research and development to create new products and techniques, many of which can be exported around the world” therefore with Johnson Matthew’s highly skilled research and development team constantly analysing and improving the products provides a good advantage for the company as they gain tax credits which may allow them to sue the surplus money on more research.
The environmental law set by government to control and decrease air pollution has the ability to benefit Johnson Matthey company’s sales of catalytic converters, as there may be an increased demand by other companies to buy the product in order to abide by the new law of less pollution.
1.1.2 Environmental Factors
The three main economic factors which affected Johnson Matthey’s operations were:
1.1.2.1 2008 Banking Crisis – Global Recession
The recession lead to a decreased demand for Johnson Matthey’s product. He needed to reduce the cost of production by increasing the efficiency within the company, by using less natural resources as well as minimising the waste by conducting lean production techniques (Johnson Matthey’s case study). These efficiencies increased the sustainability of the company which also saved the company money and at the same time conserving the planets natural