Name anticipation of providing fashionable footwear that was

Name : Jasmin Lim

Title of the report : External
Environmental Analysis of Charles & Keith and Singapore

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Date of Submission : 25th
January 2018

Student ID : CT0300346

 

 

 

 

 

 

1.    
Introduction

This report will mention about
Charles & Keith from Singapore. The purpose of this report is to achieve an
environmental analysis to help develop a plan by keeping decision makers within an
organization. Also, it helps the company to improve the outline of their
environment to find more opportunities or threats. The structure of this
report including company background, country background, PESTEL analysis,
porter’s 5 forces, strategic recommendations, last but not least conclusion for
summarize this report.

2.     Company
background

Charles & Keith was found in
1996 by starting a business in partner. The founder named Charles Wong and
Keith Wong with the anticipation of providing fashionable footwear that was
custom-made to the sizes of Asian women. They are famous for its women’s
footwear and accessories by reason of the quality with affordable price. The
shoes, bag, and accessories is the first outlet of as store in Amara Shopping centre.  In
2013, the company had developed into an international chain encompassing 400
outlets. In 2002, the popular of this company was proved by several awards
including the Singapore Retailers Association’s Excellent Service Awards as
well in 2008 Charles & Keith won the Enterprise Award at the Singapore
Business awards.

3.     Country
background

This country background is about
Singapore which located in Southeastern Asia, islands between Malaysia and
Indonesia.
Singapore government has to reluctant to acknowledge just how far the economy
has been transformed over the past four decades. A lot people believe that the
rather odd aversion on the part of the government to Singapore being classified
as a ‘developed economy,’ and its perseverance on being labeled a ‘high income’
developing economy.

4.     PESTEL
analysis

Definition of this analysis is to
identify and understand how to improve a company. Explanation of PESTEL is an
acronym for political, economic, socio-cultural, technological, eco-environment
and legal. This all factors might affect in 
business. PESTEL lead the way to innovate designer, the strategic management
has to help to achieve peak performance with their product. The Singapore’s
global organization becomes more digital and economic. It will get more responsibility
of the business and customers. The environmentally responsible based on the
creative and financial reward for their employees and their shareholders. Singapore’s
authority have promised to the global leader that they will keep the
competitive and drive the development of economic in the future. Everyone has
been recognize the importance of technologies growth for modern life and change
to continue invest. As times goes by  PESTEL
of Singapore, they also have smart idea and develop their talent by opening up.

Diagram 1 below provides a PESTEL
analysis of  Singapore.

 
Political
 
·        
Taxes policy ( revenue raising
and promotion of economic and social goals ).
·        
Declines in productivity
·        
Strict and stable government
·        
The government is showing
interest in opening up.
 

 
Economic
 
·        
Human resources ( low )
·        
Growth rates ( 2.0%)
·        
FDI inflow ( US$50 billion )
·        
Inflation ( 0.60% )

 
Social
 
·        
Religion ( Buddhism,
Christianity,   Hinduism, Catholicism,
Islam ).
·        
Cultures ( combination of Asian
and European cultures ).
·        
Languages ( English & Chinese
)
·        
Literacy rate 96.8%

Technology
·        
Credit or debit card usage
·        
Internet usage
·        
Wi-Fi accessibility
·        
Invest heavily in technology

Eco-environmental
 
·        
Recycling
·        
Being “Green”
·        
Nature resources
·        
Climate
·        
Water resources

Legal
 
·        
Consumers
·        
Safety laws
·        
Strict laws
·        
Employee policy
 

 

From the diagram above, it can be
seen that :

Taxes
policy every bussiness in Singapore have taxes policy such
as income tax, property tax, motor vehicle tax, goods and service tax ( GST ) therefore
Singapore should get every store charge for taxes policy. After that the
stakeholders will run less shop than before to invest more shop in other
country. The basic tenet of tax policy in Singapore is keep them competitive for
corporations and the individuals. The competitive rate help them attract a good
share of foreign investment. The low individual rate is motivation to work
hardly for the employees.  Charles &
Keith will get a lot of profit from them.

Human
resources is one of the most importance factors for the worker’s
insurance in any business. They give their abilities for the company and
contribute for manufacture. Human resource can continue or lose depend on their
funds, so they must put on their risks on it. In fact, the company can get the
different revenue as amount of earn and amount that spend by getting more
buyers. Moreover, they can operate or produce, supply or get raw material from
natural. Thus, Charles & Keith company must make sure that they give a good
insurance for their employees in Singapore.

Languages
are
important for every countries. Most companies in Singapore main language are
Chinese and English. Some people don’t know how to speak English. If someone
don’t understand English or Chinese, they will face to a lot of difficult
things to work in the industries which most of the Singapore companies
communicate in English. It is not a big problem for this company because they
just need to advertise and design the online website in English to help their
customer buy products easily. It will help the Charles & Keith get more
profit.

Internet
usage is most of companies need to contact supplies.
Internet is very important for everyone because with internet the staffs will
know information easily and become more convenient to follow the progress in company.
It allows this fashion company service the buyers better and get the trust from
them when they get difficulties.

Nature
resources coal, air,
iron,
water, wind
energy, wood and oil. It can be produce like raw material to produce hydrogen
of nuclear materials and gas. We can also use a tree from the forest to produce
oxygen. Nature resources will effect on the natural life and it can control the
resource on what they use in the product and other things in their stores.
Charles & Keith company must ensure about the materials to make product to
suitable in Singapore

Strict
law  Singapore known
as one of the cleanest cities all over the world and low crime rate. In this
country, the business must understand that “low crime does not mean to crime”. The
government will not forgive for any guilty actions in this country. Thus, if
Charles & Keith company want to be success in this country, they must have
to know clearly about laws and what they can do to business in this country.

5.      Porter’s
5 Forces

Definition of porter’s 5 forces is
to understand the industry environment. Description of porter’s 5 forces there
are new entrants, buyers from customers, suppliers, substitutes, and rivalry.

Porter’s 5 forces refers to the
chart below.

 

 

 

 

 

 

 

 

 

 

 

The treat of new entrants
HIGH

Supplier
HIGH

Rivalry
HIGH

Buyers
LOW

Substitute
HIGH

 

 

 

 

 

 

 

 

 

 

 

 

The chart above shows that there is a framework for
assurance engagements analyzing the level of competition least of competition
least beneficial to consumers is within an industry and business strategy
development. We expect the risk to remain and include political uncertainties
over the income of talks and potentially tighter credit condition in Singapore.
They may have a concept of five forces that discover by the competitive of
intensity hence the main attractiveness are in industry. Their revenue is still
picking up but they also being conservative about the economy.

From the 5 porter’s above it can be seen that,

A
threat of new entrants Will be high because it attracts
more competitors looking to achieve profits. Furthermore, it may come with
affordable price. In that case, Charles & Keith will have strong  brand in Singapore. They will also have a
benefit of been a markets leader such as significant economy of the scales.

Substitute
is
high because new competitors can sell other product together with. As the price
of quantity goes up, the quantity purchase is increase. Charles & Keith
consumers think that  their design is
fashion lifestyle as many people are buying for this affordable product and
they will be loving the collection. Customers might feel to use the bag virtually
from their consideration.

Supplier
is
high because they can be assured he work of firm or charges high prices for
unique and high quality resources. Wholesale store has a high tax for the price.
They also agreed on  compensation to be
paid to state in the event of revenue. They may be bargaining the position with
supplier by distribute with others.

Rivalry
is
high because Charles & Keith sell high quality stuffs with affordable
price. Charles & Keith also have a good service and tax in their state of
revenue.

Buyers
are
low because customers can go another store that sell same product but different
brands for instance Pedro. Pedro sell same products different design and the
price is not too expensive. They spread out a lot of outlet in other countries
that are popular, create advertisement and promotion  to attract more customers and find investor
to invest their company.

 

6.     Strategic
Recommendation

After all the changes, company want to achieve like
strategic which they planned before. It is based on the strength and weakness
that company must compare to their competitor. Additionally, they must care
about the competitors, compe

Strategic are the planning in what skill
you needed. They also have different type of commitment such as business,
market, product and last but not least service in strategies. Additionally,
competitors and competition like cost, differentiation, forces, customer
intimacy and product leadership. Company enter a new product or geographic of
market or gain sales to share the lower prices based on the cost itself. Below
are all the strategic of recommendation.

ü  Do
explore the new way of technologies in business.

Develop an
efficient email management process that makes it easier to stay on
top of the flow of messages.

ü  Do expand
to other countries in ASIA

Charles & Keith stores are very
limited, it only can find in Singapore, Indonesia & Malaysia only. May be
they can expand in Thailand, Vietnam or Taiwan.

û  Do not
go for those country that have huge competitors

If that country have a lot
competitors, the product will not be sold and customers might be not interested
with the designs.

û  Do not produce
goods that can damage environment

A lot of suppliers produce products
by killing animals for their feathers. This cause environment damage because
that animals might be extinct.

ü  Do environment
friendly

Produce products that not harm
animals at all and creating less waste

ü  Do
check the stuff condition before start selling

To avoid customers complains and
disappointment of their products

7.     Conclusion

Charles and Keith have a large
manufacturing company which needs to produce more different design with another
brand. Moreover, another thing about Charles & Keith is that they can give
us some idea of what consumers are. They have high quality material with
affordable price. Furthermore, Charles & Keith trying to have lagers
consumer base. Charles & Keith in industry will be increase the profits for
the company in terms of price. It can see from the Charles & Keith bags,
shoes and accessories are not so much luxury products even with the small
amount of discounts offered. Charles & Keith is a very perceptive company
that always improve by itself and satisfy a lot of their customers.

 

8.     Reference
list

Charles & Keith. (2015).
Charles & Keith website.

http://www.charleskeith.com/sg

  

http://eresources.nlb.gov.sg/infopedia/articles/SIP_1696_2010-08-03.html