Assume that your manager has asked you to prepare a short report concerning the external environment of
Question:
Assume that your manager has asked you to prepare a short report concerning the external environment of your firm, Target. Target has recently been rocked by several setbacks (exiting the Canadian market, the Christmas hacking incident, and several poor sales/income quarters). In the report, I want you to focus your attention on the U.S. market
Identify five of the most important variables in the external environment that could have an impact on Target’s business. In identifying these five highest priority or most important external variables that Targetwill want to track over time, each must come from a different category of the PESTEL. For the report, you might want to set up a table something like the following (probably using a landscape print setting). The example used below is for the auto industry, whereas your report will be on the auto industry PESTEL environment.
PESTEL CATEGORY | VARIABLE TO TRACK | IMPACT ON IKEA | OBSERVATIONS/ RECOMMENDATIONS |
Political | Pending U.S. Tariff Legislation | Higher Tariffs will likely impact the sale of cars manufactured in other countries and imported into the U.S. by increasing their prices. However, other countries are likely to respond by raising tariff protections against U.S. firm’s. | Bariefly report any info you can gather about this variable. |
Economic |
|
|
|
Social |
|
|
|
Technological |
|
|
|
Environmental |
|
|
|
Legal |
|
|
|