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Strategic Analysis Of Bmw

Submitted by hpatel41 on April 5, 2008

Category: Business
Words: 4270 | Pages: 18
Views: 979
Popularity Rank: 5,809
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Executive Summary

Objectives
The object of the study is to analyse the strategies used by Lush to build and sustain competitive advantage. In order to carry out the analysis effectively, a number of theoretical models have been chosen to apply to the company in order to map their strategic direction better.

Lush looks set to battle a number of emerging competitors; it is important that they know exactly where they are headed strategically, so they can plan the best course of action to bring the greatest success.

Methodology


SWOT and PESTLE Analysis
PESTLE Analysis

Political/Legal
Issue Implications
Petrol/Diesel Taxes Tax increases on fuel lead to increases in delivery charges for products between manufacturing and sales outlets.
UK Minimum Wage Minimum wage structure has been in place since 1999, and the rates have been continually assessed since then. (HM Revenue and Customs 2006)
REACH Legislation EU Registration, evaluation, and authorisation of chemicals (REACH) legislation. -- could require all cosmetics ingredients to be tested on animals. (Won CEO Mark Constantine PETA's "Trail-blazer" award) (PETA 2006).
Health and Safety EC directive of 1976, implemented by law in 1996 -- products must not cause harm to human health. Must be assessed for safety prior to going to market. (Keynote, 2006)



Economic
Issue Implications
Minimum wage in the UK Three tier minimum wage structure:
£5.35 per hour for workers aged 22 years and older
A development rate of £4.45 per hour for workers aged 18 - 21 years inclusive
£3.30 per hour which applies to all workers under the age of 18 who are no longer of compulsory school age. (HM Revenue and Customs, 2006)
Price of crude oil Over the past five years, the price per basket of oil has risen by $38.66, from...

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