Business Strategies Assignment Example | Topics and Well Written Essays - 1500 words

Business Strategies - Assignment Example The target market of a company is women aged from 25 to 54 who have children and a sufficient income to spend on their products. The company strategic approach is built around the convenience and price suitable for its customers. Under this strategy, company has built its stores in a boxlike structure where shoppers can use carts to browse throughout the stores. Strategic management strategy of Kohl’s Corporation plays a vital role in maintaining the company’s profitability even in adverse situations. The customer’s taste and preferences are changing regularly, which can directly affect the business. To avoid certain situation, it is necessary to review the external trends of the market regularly in order to take strategic actions on time. For this purpose, the strategic manager needs to review the internal and external environment of the company. It involves the process of job scanning, addressing external environment and trends, and identification of opportunit ies and threats. External trends for Kohl’s Corporation The manager at Kohl’s Corporation has to face various external trends that mainly concern external business environment. The profitability of the company is based upon these internal and external factors existing in the business environment. ... Economic factors. In the past few years, there has been a decline in general economic condition of the country that leads to reduce the customer demand for merchandise. It also leads to reduce the sales and gross profit margins of the company. According to the case, the company’s present economic condition is quite well, and it is able to compete with its competitors, but for future prospective, company must keep track of functional and technological changes in the retail industry so that managers can take decisions on time (Jeffs, 44). Technological trends. At present, there are various technological trends entering the retail and departmental store industry that can affect the consumer taste and preferences such as shopping malls, where various brands can open their store under one roof. According to Kohl’s business strategy, they operate their stores in three settings: the stand alone buildings, the big box mall and the lifestyle center. These three kinds of stores a re able to create an environment that is convenient, friendly and exciting for their customers. It gives a unique feature to its business strategy. Governmental factors. What concerns the political situation, governmental policies and political system of the country are extremely uncontrollable, and it can adversely affect the consumer confidence. The outbreak or escalation of war, the occurrence of terrorist’s acts and the other hostilities of the political system can lead to a decrease in spending by consumers. Socio-cultural factors. Socio-cultural factors include the knowledge, art, beliefs, morals, laws and customs of the society. The choices and purchasing habits of the customers are largely influenced by the socio-cultural factors, and it changes over time. Kohl’s Corporation