Pestle Analysis Briefing Report
BOUTIQUE BUILDING AUSTRALIA PESTEL ANALYSIS
The strategic priorities of Boutiques Build Australia is to serve as the key high quality designer for homes in the Sydney metropolitan surrounding settings in Australia. As the company has been operation for 7 years, and has the functioning workforce, although predominantly male at this point in time it does have about three females working, and it depicts promise as its aim is to serve as the best boutique home builder in its region. Essentially, its key deliverable to its customers is high quality (pestle analysis).
PROBLEMS
More male employees than female employees
Contractors are not available when required
POLITICAL
From a political perspective, it is important to note that Boutiques Build Australia is essential serves as a premium brand, operating as a one-of-a kind in the market. The fact that it is embarking upon an expansion plan especially in terms of the workforce means that it has a social responsibility to not only have a positive impact on the environment that it operates in but also an additional responsibility to its members, meaning that the new female employees that will be recruited will require empowerment benefits to be allocated to them, as well as special considerations in the form of maternity leave. By effect then, the company actions need to be compatible with government standards so that it can operate cohesively in the Australian context (Greve, 2001).
ECONOMIC
From an economic standpoint, two challenges are important, the first one is regarding the workers who will now be on a permanent instead of a contractual basis, and the second challenge will be the cost of training the female employees who may be relatively inexperienced in the field, simply because it is a field dominated by men. So in order to make these changes, the company will have to bear additional costs to ensure that they operate motivatedly (Truitt, 2011).
SOCIAL
As a company that helps design house interiors, social perception is important. The induction of a greater amount of females will be liked by some, and disliked by some. While some may prefer a feminine touch to play an impactful role in their home designing, the others will want a more masculine touch, and will therefore prefer another firm over this company as their increased induction of females will mean, that their company vision is perceived as changing which may not appeal to the patriarchs in the society. Social perceptions vary over space and time and are important to be taken into account (Drumwright, 1996).
TECHNOLOGICAL
From a technological perspective, the cost of inductions of new employees, which are permanent technicians instead of just contractors may prove extensive, meaning that mechanization will prove a useful alternative when taking so many permanent technicians onboard. Additionally, the company’s aim to perform as the best building boutique in the market means it will have to utilize technological avenues to both market itself as well as acquire the best skilled employees both when it comes to the female members as well as the permanent technicians and former contract workers. The company vision needs to be broadcasted via technological channels so that it can attract the appropriate audiences, whilst preparing its workforce best and accordingly (Gordon, et. al 2008).
ENVIRONMENTAL
From an environmental perspective, the company needs to understand that it operates in the building and construction business, meaning that there will social consequences of its actions and that it may have pollution implications as well. In light of such awareness, it must be able to ensure that while maintaining the premium nature of its products, it also ensures that the social cost of its decisions is low (Primeaux and Stieber, 1997).
LEGAL
According to Chakravarty and MacLeod (2009) from a legal perspective, the firm needs to take into consideration the legal complications which will come into play once the firm employs a new set of employees, of both the categories female and the permanent position workers. Their working time and the minimum wage limit are of primordial importance for the company to determine immediately. Additionally, the applicable laws and insurance that no child labor is embarked upon need to be monitored to avoid any legal implications for the company. Additionally, the occupational training that its workers need to embark upon in light of the new inductions, keeping in lieu the legal perspective must be catered to, and that too in the most cost efficient manner
PESTLE ANALYSIS STRATEGIES
There are two routes that will be adopted in the case of strategy targeting. The foremost important target is that of female workers, and the other important target is that of permanent employees. For the former, a female friendly environment, good fringe benefits, appropriate media targeting and a timeline of recruitment are strong strategies, whilst for the latter, an effective salary package, with greater benefits compared to its competitors and appropriate media targeting are all good strategies too.
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BIBLIOGRAPHY
Chakravarty, S., & MacLeod, W. (2009). Contracting in the Shadow of the Law. The RAND Journal of Economics, 40(3), 533-557. Retrieved from http://www.jstor.org/stable/25593722
Drumwright, M. (1996). Company Advertising with a Social Dimension: The Role of Noneconomic Criteria. Journal of Marketing, 60(4), 71-87. doi:10.2307/1251902
Gordon, S., Tarafdar, M., Cook, R., Maksimoski, R., & Rogowitz, B. (2008). IMPROVING THE FRONT END OF INNOVATION WITH INFORMATION TECHNOLOGY. Research Technology Management, 51(3), 50-58. Retrieved from http://www.jstor.org/stable/24135954
Greve, C. (2001). New Avenues for Contracting out and Implications for a Theoretical Framework. Public Performance & Management Review, 24(3), 270-284. doi:10.2307/3381089
Primeaux, P., & Stieber, J. (1997). Managing Business Ethics and Opportunity Costs. Journal of Business Ethics, 16(8), 835-842. Retrieved from http://www.jstor.org/stable/25072947
Truitt, D. L. (2011). The Effect of Training and Development on Employee Attitude as it Relates to Training and Work Proficiency. SAGE Open. https://doi.org/10.1177/2158244011433338
