[COMM1110][2022_T2][T14A][Assessment_2a][z5354579][Xu]

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University of New South Wales *

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COMM1110

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Communications

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Apr 3, 2024

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docx

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Uploaded by CorporalValorWolf41

COMM1150 2A z5354579 Report review: This brief analyzes the impact of the external business environment on Myer (Australia) , as well as the opportunities and threats Myer will face in the external business environment over the next five years through Social-culture, Political and legal, Economics and Sustainability lens. Relevance & Importance of lenses  Social-culture lens : As Myer's most important stakeholder, the consumer, Myer faces the direct impact of Australian society and culture. Factors such as social organization composition, social culture, education level, population distribution, and spending power become the way Myer's marketers understand their customers and use this information to develop marketing strategies.  Political and legal lens : Political and legal factors can affect the stability of Myer Australia's long-term profitability and impact Myer's operations. For example, employment laws include the minimum wage, mandatory employee benefits, health and safety laws, consumer protection laws, etc.  Economics lens : Global economic factors such as inflation, unemployment, labor costs, interest rates, and exchange rates (which affect Myer's investment strategy globally) directly impact supply and demand in each market. Myer uses consumer spending and retail growth rates to assess market uncertainty. In particular, during the pandemic, Myer experienced a decline in sales and closed a significant number of brick-and-mortar stores due to the depressed global economy, and temporarily or permanently terminated employees in brick-and-mortar stores and paid compensation.  Sustainability lens : Over the past few years, the importance of sustainability for companies has increased as people have become more environmentally aware and environmental laws have improved. Government

COMM1150 2A z5354579 and legal pressures have led companies to increase their operating costs and invest more in developing renewable technologies. Moreover, for customers, companies are expected to comply with the law and be socially responsible. All of these factors provide a wealth of detailed information about the operational challenges facing the organization, affect Myer's profitability and sales strategy. Issues:  Political and legal lens : Higher labour cost Effective July 1, the minimum wage will increase by $1.05, or 5.2 percent, to $21.38 per hour from a base of $20.33 per hour. Low-income earners are particularly vulnerable in the face of rising inflation, with the rising cost of living putting too much pressure on low-income workers. (Jake, 2022)  Economics lens: Global Economic decline In Australia, changes in economic activity during the pandemic were the largest in nearly a century. GDP in the June 2020 quarter fell 7% following the outbreak in early 2020, driven by a 12% decline in household consumption. Consumption patterns changed considerably at the start of the pandemic as families adapted to activity limitations. Store closures also led to a sharp decline in spending on clothing, footwear, and department stores. (Rosa et al. 2022)  Sustainability lens: High cost of production and recycling Until recently, Australia shipped most of its waste overseas as a cheaper alternative to local recycling, with China being the primary destination for this waste. China has banned imports of "24 types of solid waste and set stricter standards for pollution levels" since January 2018. Other countries have subsequently restricted imports of solid waste. Suddenly, thousands of tons of

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