BUSI601 Business Environment

Introduction

The main purpose of this research is to perform an external analysis on the small Company of Vancouver called the Bunk beds Canada. External analysis of any company can also be referred to as the environmental analysis of any company which helps to analyze the position of the company in the market. The framework that will be used to perform the external analysis of the company is the PESTLE analysis. This analysis mainly refers to the political factors, the technological factors, the economic factors, the environmental factors, the social factors, and the legal factors of the company which are responsible for affecting the sales of the company.  Bunk beds Canada is a small business owned by a single person at its initial days. It was initiated in the market in 2003 with a variety of bunk beds that were sturdy and fashionable. This company also introduced an e-commerce platform for the company. This was the first furniture company to introduce an online platform for the customers (Kim, 2018). Slowly the company started introducing new products in the market which included furniture of various types. The company introduced all kinds of products for completing a new bedroom from bunk beds to mattress, sofa, futons, bean bags, loft beds, and many new accessories. These goods were not only developed in the private warehouse but also imported at certain times. The growth of the business from the very beginning us not very steep but there is a stability in the sales of the company for the last few years. Many new customers are being attracted due to the innovative products launched by the company (Ngo, 2019). But it is analyzed that the sudden rise of a few famous furniture brand in Canada had affected the sales of this organization. But the recapture of the market was possible due to the production of high quality and innovative products. But the main drawback of the company is that the company had not planned for strategic marketing policies and the brand image of the company has not yet developed a high value in the market. The time required for developing a strong band image depends on the business and also the quality and price of the products. Thus a detailed external analysis would be performed according to the PESTLE model to analyze the crucial factors affecting the position of the company and also help in strategic planning for expanding the business.

Legal Factors

The legal factors of the company involves the laws of the government which can affect the growth of the company. It also refers to various tax or employment policies followed by the company and also any considerations or legal policies that are applicable for the products produced by the company. Bunk beds Canada is a relatively small organization and employs very few people. These people are mainly the suppliers and the designers responsible for producing the furniture for the company. These employees are paid for their work with proper governmental policies and the employees also enjoy various facilities (Phan, 2021). Moreover the company also maintains a clean account by clearing the annual tax in proper time. Canada is a huge importer of furniture and there are not much laws regarding local furniture organizations. But the felling of trees have been recently reduced by a large number mainly due to the policies of the government which has resulted in the scarcity of raw materials for the furniture companies. But the Bunk beds Canada has a trusted chain of supply to get sufficient amount of wood for managing the requirements of the company (Loder, & Momper, 2019). Thus the company maintains a stable legal account in terms of employment and taxes. The other legal considerations which are important for the company is the safety of the customers. Thus is mainly because the bunk beds are not very stable in general and may cause severe accidents if not used according to the proper rules. These rules are laid down by the company and approved by the government for the safety of the customers. It is evident that if any accident happens due to violation of these rules then the furniture company will not take any responsibility. The first law regarding the use if Bunk beds is that the user should be above the age of six. This is very evident as the Bunk beds are high and small babies tend to roll in their sleep resulting in nasty incidents. This the small children must be maintained for efficient use of these Bunk beds. The second law states that the stairs provided must be used for getting up or climbing down. This is also effective in reducing the chances of accidents or injuries. Another very important rule for using Bunk beds states that no more than one person can stay at the upper portion of these beds at a single moment. This may result in the breaking of the Bunk beds and may cause damage. Another law states that the Bunk beds can be used for play area if the bed is specifically designed for the purpose.

Environmental Factors 

The environmental factors of a company signifies the sustainability of the business and also helps to analyze the impacts of the business on the environment of the Earth. It can be stated that environmental problems are becoming more common in modern days due to the excess pollution done by human beings in various aspects of daily life. The pollution is mainly caused through air, soil, and water. These polluting particles are responsible for affecting the environment in various ways which are leading to several crucial results like global warming, soil erosion, melting of ice caps, irregular change of climate, and many such events. These environmental problems are caused mainly because of human activities like uses private vehicles, refrigerator, air conditioners, deforestation of large forest land for developing residential area, and many such actions. These actions of the human beings are considered as unsustainable for the future of the Earth and will affect the future generations severely. The furniture industry involves the development of various products which are mainly made if wood. This wood is acquired by chopping large forest land. The deforestation is a serious issue related to the sustainability of the environment (Vukmirović, Petrović, & Kostić-Stanković, 2017). Trees are an essential part of the environment and performs various key activities for the enhancement of the environment. The trees are responsible for circulating the water vapor and result in proper rainfall of an area. The tress also help to control the levels of the most common greenhouse gas, carbon dioxide. The greenhouse games are responsible for the issues of global warming and are resulting in the melting of ice caps of the Polar Regions. This is indirectly increasing the water levels of the oceans around the world and may result in the loss of many regions around the world by the next decade. Thus it can be analyzed that the unsustainable use of wood by mass deforestation had not been a wise choice for the industries using wood as raw material. In recent times the companies are using the wood in strategic ways to enhance the durability and the sustainability of their products. Similarly the Bunk beds Canada has also introduced certain innovative ideas to make their business more sustainable for the future (Bessière et al. 2019). The wood used by the company are replaced with modern ply wood which involves the use of comparatively less wood for developing the same furniture. The durability of these ply woods are also high and have also enhanced the production cost of the company. Thus it is essential for the companies to maintain a positive impact on the environment such that the actions of the company is sustainable for the Earth.

Social Factors

The social factors of any business involves the changes incorporated in the company for adapting to the change in the tastes of the customers. A main social factor is the development of a number of competing companies in the market. Moreover there are also some famous brands dominating the market of bedroom products. The increase in the number of choices had enabled the customers to get the best product which suits their status. Thus the Bunk beds Canada requires to introduce various modifications or innovative ideas to improve the efficiency of their products. The company must also introduce strategic marketing policies like digital and social media advertising to enhance their sales and also develop a positive image for the brand. Branding of a company is a very important aspect for enhancing the profits of a company as the popular brand image would increase the value of the products in the minds of people. A company with a popular brand image has to maintain certain unique properties of their products which are essential and enhances the experience of the customers (Muhonen, 2017). The concepts of sustainable business is also getting very popular among the people and these customers are trying to invest in sustainable products which are getting famous due to new brands entering the market. The population explosion around the world has resulted in a scarcity of all kinds of goods. This has inflated the price of every object and had made it difficult for the customers to afford high end products in every aspect of life. Moreover the demand for high end products are generally low as very few people tend to select these products compared to normal products of medium range. The Bunk beds Company thus targets the normal people of the society and develop medium or low end products such that it is easy for customers to afford. The company also maintains some elite customers and imports special products for these clients. The availability of products for both the sections of the society helps the company to maintain a large number of customers and also helped to enhance their profits. Another social factor which is affecting the growth of the company us the interaction and spread of the various modifications being introduced in the company. This gap between the company and the customers can be bridged by using the concepts of digital or social media marketing techniques. The social media is a digital platform with more than a million people active every day. Advertising the products in such a huge platform would enable the company to attract new customers and also enhance the brand value of the company. Strategic marketing is thus important for the proper growth of the company in the competitive market.

Reference List

Bessière, D., Charnley, F., Tiwari, A., & Moreno, M. A. (2019). A vision of re-distributed manufacturing for the UK’s consumer goods industry. Production Planning & Control, 30(7), 555-567.

Kim, B. G. (2018). An Exploratory Analysis on Strategic Changes of Furniture Retailer: Focusing on IKEA and Hanssem in Korea. The Journal of Distribution Science, 16(12), 33-45.

Loder, R. T., & Momper, L. (2019). Injuries associated with bunk beds occurring at schools: results using a US national data base. Injury prevention, 25(5), 372-378.

Muhonen, A. (2017). MARKET ENTRY TO THE DUCTH CHILDREN FURNITURE MARKET: CASE KUOPION WOODI OY.

Ngo, Q. (2019). Customer Response Analysis for Facebook Marketing–Case Study: Cheapsleep Hostel Helsinki.

Phan, S. (2021). The effect of PESTLE factors on development of e-commerce. International Journal of Data and Network Science, 5(1), 37-42.

Vukmirović, V., Petrović, D., & Kostić-Stanković, M. (2017). Strategic management and its effects on Serbian wood industry. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, 22(3), 37-47.

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