PESTEL Analysis of K-Mart
PESTEL Analysis Understanding the general environment of a certain business requires knowledge regarding the key factors and trends in broader society. PESTEL Analysis gives a business the ability to break down the general environment into six different categories: Political, Economic, Social, Technological, Environmental, and Legal. By analyzing and studying each area, a company can create a strategy that most benefits them. Sears and K-Mart are two retail businesses that can gain from understanding the general environment through PESTEL Analysis. They could use it bad. One way to take a step forward is by creating new innovative strategies and conducting a PESTEL analysis is a good place to start.
The first step of PESTEL is to try to understand the political environment. Sears and K-Mart focus on what political factors might affect the way they conduct business and create strategies based on this information. Sears and K-Mart are a part of many companies owned by Sears Holdings Corporation. Sears Holdings Corporation engages in government and political affairs that will benefit them. They openly express interest in politics on their website, stating “In some jurisdictions, Sears Holdings is engaged in the political campaign process to help elect candidates of both major political parties who support the retail industry and believe in the free enterprise system.1” Engaging in the political arena helps a business like K-Mart understand political trends. Political factors that may be lobbied on by Sears and K-Mart are ones that involve tax policies, labor laws and tariffs. Sears Holdings Company would most likely back the candidate that most benefited them. In 2008 former CEO of Sears, Alan J. Lacy, was one of many retail executives who supported John McCain for President.2 Being open about political affiliations can possibly affect customer opinions. This may not have affected the customer base of Sears, but Sears believes that the Republican Party best
The first step of PESTEL is to try to understand the political environment. Sears and K-Mart focus on what political factors might affect the way they conduct business and create strategies based on this information. Sears and K-Mart are a part of many companies owned by Sears Holdings Corporation. Sears Holdings Corporation engages in government and political affairs that will benefit them. They openly express interest in politics on their website, stating “In some jurisdictions, Sears Holdings is engaged in the political campaign process to help elect candidates of both major political parties who support the retail industry and believe in the free enterprise system.1” Engaging in the political arena helps a business like K-Mart understand political trends. Political factors that may be lobbied on by Sears and K-Mart are ones that involve tax policies, labor laws and tariffs. Sears Holdings Company would most likely back the candidate that most benefited them. In 2008 former CEO of Sears, Alan J. Lacy, was one of many retail executives who supported John McCain for President.2 Being open about political affiliations can possibly affect customer opinions. This may not have affected the customer base of Sears, but Sears believes that the Republican Party best
Cited: 1 "Government Affairs." Sears Holdings. N.p., n.d. Web. 17 Apr. 2014. . 2 Farfan, Barbara. "Democratic and Republican Parties Both Get Strong Support from Retailers." About.com Retail Industry. N.p., n.d. Web. 17 Apr. 2014. . 3 Berman, Jillian. "Sears Kmart Stores Closing: At Least 100 Stores To Shut Down Retailer Says." The Huffington Post. TheHuffingtonPost.com, 27 Dec. 2011. Web. 17 Apr. 2014. 4 Berman, Jillian. "Sears Kmart Stores Closing: At Least 100 Stores To Shut Down Retailer Says." The Huffington Post. TheHuffingtonPost.com, 27 Dec. 2011. Web. 17 Apr. 2014. 5 Tode, Chantal. "Sears Puts IPads in Shopper Hands to Enhance In-store Shopping. Napean LLC, 17 Oct. 2011. Web. 17 Apr. 2014. 6 "Corporate Governance." Sears Holdings Code of Conduct. N.p., n.d. Web. 17 Apr. 2014. .