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A company’s environmental analysis is the evaluation of the actors and forces outside of marketing that directly affect the company’s ability to build and maintain relationships with customers. As one of the most successful companies worldwide, David Jones understands the necessity of preparing a rational environmental analysis report.
Instead of evaluating the factors as separate entities, this report will discuss how the factors within the macro environment shape the micro environment. In particular, it consists of SWOT analysis for internal environmental analysis and PEST analysis for external environmental analysis and other factors in environment affecting the business and the potential recommendations to address these issues.
David Jones Limited is an Australian retailer with earnings from its core department store business of AUD 104.9 million in the financial year 2012 and a further AUD 49.4 million from its complementary financial services business.
Currently, the company employs 8,100 people and operates 38 department stores in key metropolitan and suburban centres in and around Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra. Currently, David Jones’s stores provide a broad range of national and international brands across categories, including: womenswear, menswear and childrenswear; shoes and accessories; fragrances and beauty; homewares, bedding and furniture, appliances, home entertainment and home office; and a high-end food and liquor offer in selected stores. According to the publicised information; marketing, finance and administration are the three key departments.
The marketing department is responsible for collecting and analysing market data as well as positioning David Jones’s brand and image. It also creates responsive strategies to sustain profit and expand the company.
The finance department not only provides financial plans for David Jones’s activities but also foresees the associated financial risks and creates possible solutions. By preparing their annual report, the department is able to summarise the company’s performance and communicate to external sources such as shareholders for future investments.
The administration department is the highest department within David Jones’s business structure. With its ultimate power as a central processing unit, this department oversees HR, recruitment and controls the organisational culture of David Jones
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