Management and Business Context Retail Shop - Myassignmenthelp.Com

Question: Discuss about the Management and Business Context Retail Shop. Answer: Introduction Spicy Retail Shop has started its retail business of selling the spices by importing it from the Asian countries. The company has targeted the Asian people who lives in Australia and it has employed many people to handle the business. Globalization in this industry refers to the integration of the products across different nations. It can be said that globalization has political, environmental and technological impact on the retail business. There must be a necessary consequence of such a process of globalization where the increased impact of economic change in one area affects the other regions of the world. Globalization has benefitted the company and the customers has access to a wide range of goods and services at a cheaper price. This is possible for the for the domestic producers and the availability of alternative ideas will put a pressure on the business organization to produce better and cheaper products at a much lower price. Moreover, globalization has also helped the Aust ralian business organization with a larger and wider pool of capital from which investment will be done and thus it will help in enhancing the productivity of the company. It can be said that in an individual level, globalization has given better access to the firms companies and firms in Australia and they have better access to the varied options (Ghosh, 2014). This paper will highlight the effect of globalization on the food industry of Australia with special reference to Spicy Retail shop in Australia. It will also discuss the different theories that are associated with globalization and provide specific recommendation to improve the business conditions of Spicy Retail Shop. Discussion Effect of globalization on Spicy Retail shop Globalization will provide access to new countries and it will help in the business expansion of Spicy Retail store of Australia. It will increase the sales, develop new services and product and thus deliver high level of output. Moreover, Spicy Retail Store will also yield pool of return for the investors and the Australians who have made direct investment in the company. One of the major disadvantage of globalization for the Australian company is the steep competition with the other firms in the same country and thus it might be a race in terms of wages, jobs and standard of living of the people (Wall, 2014). The Australian companies have also experienced rising imports and thus this has helped in increasing the employment level of the country. Trade liberalization and several critics of deregulation have demonstrated income inequality as an evidence of race-to-the bottom (Goodman Sage, 2016). The income of the people has increased with the passage of time and this is advantageous for Spicy Retail Shop. Drivers of value and the dynamics of spices industry The development of food sector in Australia is a target of criticism from many groups . It is necessary to galvanize public opinion in support of these particular industry and thus it will help in the development of these industry. The dominant drivers of value in this spices retail industry will include the share or the presence of private level and there will be use of everyday low pricing practices to ensure competitiveness in this industry (Bernstein, 2016). There must also be scope of product extension through additives and nutrient enrichment that is easier to differentiate. The incidence or the opportunity for the imported and processed spices will play an important role in the category that includes private label lines in the production process (Turi, Goncalves Mocan, 2014). The stores will also be commanding growth in varied categories such as dry spices and thus it is susceptible to pressure from the convenience preferences of the consumers. It will also decrease the volum e in the ingredients which are necessary in the production of spices (Goto et al., 2014). The distribution channel will cover a wide variety of dry grocery spices and this are considered relatively generic in each area of the product line. There is a significant concentration in the market for retail spices and thus they will have a dominant share in the market, increasing the sale of the product. It will also increase the precision in the management of supply chain and thus this will reduce the cost of the spices (Dixon, 2015). The drivers of volume and value in this sector include the level of consumers spending and confidence. There will be increase in the centralization of supply chain management and this will help in reducing the cost in this sector. The price points of the major competing lines will also be valued and the price sensitivity of the consumers across different food lines will be given due importance. The independent and the retail store channels will have only a minor share in this category and thus it offers only a limited range of food products that addresses the convenience and the needs of the customers (Handford et al., 2014). Internal and external factors that will affect the business Globalization helps the companies to conduct their business successfully and there are several internal and external factors of globalization that will affect the business of Spicy Retail Store. The internal factors include how the company will adapt to the changes so that it can compete with the other companies on a global scale. Production, customer service, marketing and development are the internal factors that are associated with globalization. On the other hand, the external factors include the new market environment where the company will set up its business entity or expand in any particular country (De Silva, 2014). The internal factor of globalization that will affect the business of Spicy Retail Store is the branding strategies that are to be adopted by the company (Paul, 2015). The main aim of the company is to emphasize or give importance to the brand association with quality products and services. The branding strategy adopted by the company will spark the interest of t he company as well as the customers because it is one of the most important factor that is taken into consideration by the customers (Jalili, 2016). The companies must also internally evaluate the work culture of the employees in the organization and their capacity to work for the development of the organization. The companies must also ascertain the weakness and strength of the employees, their performance uncertainties and thus try to reorganize their efficiency level that will help the company to expand in a new place. The reactions of the consumers to a new product or company are also regarded as a paramount when it enters a new market (Baker Friel, 2014). It can be said that on an external scale, globalization is necessary for a company to analyze the consumption trends in several markets and to adapt to the needs of the customers. It is also important to analyze the trends of the customers and segment the market according to the varied categories of customers and identifying the needs and motives of the customers (Radstrom, 2014). Moreover, the company that wants to expand in the global market must understand the market itself. The market analysis will help in determining the size of the market and how the company will grow in the future. It will also help the company to create a presence in the market so that they can gear towards profitability. It can be said that each market will have their unique barriers to enter the market that includes economic and political uncertainties and the availability of resources (Mura Gaparkov, 2014). Recommendation The retailers will have to perform exceptionally on what they have promised and this should be in a consistent manner and that is profitable to the company. A strong vision of the company will also attract the client and it is necessary that Spicy Retail Store must develop a more clearer vision to keep the customers attracted to purchase their products. The company must not only incline towards their retail base, but they must give a proper message and network that will help to communicate and interconnect with the customers. It is important that the company must have the mass retailing concepts clearer and this will help to incline towards the retail base of the company. There must be a proper network so that it becomes easier to communicate with the customers and advocate the concept of the firm accordingly. Conclusion Therefore, it can be said that globalization will boost up competition of Spicy Retail Store and help to compete in the international market. The company also needs to consider the business risks that might affect it in future and take necessary steps to protect against these threats. These threats might also affect the import business of the company. It is important for the entrepreneurs of the Spicy retail store to take this risk and adapt to the political changes that might affect the business. The economic stability and growth, import and influence of the exchange rate will affect the business of Spicy Retail Store. Therefore, the tariff and the non tariff barriers in this industry must be effective in keeping its sale of products intact and this is possible with restriction on competitive imports. References Baker, P., Friel, S. 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