Environmental Factors That Affect A Business 's Profit And Sale As A Whole

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The changes in structure and management that occurred this year mainly consist of Satoru Matsuzaki taking over as president and representative director of Ryohin Keikaku, the parent company of MUJI. This took place on May 20, 2015, followed with Matsuzaki assigning board directors to be responsible for the operations and management of foreign divisions.

Business Environment
There are many environmental factors that can affect a business’s profit and sale as a whole. To prevent any unplanned occurrences from happening, franchises analyze the external as well as internal factors in the surrounding environment to determine what must be done. The external factors that may affect MUJI as a franchise include material and labour changes which
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These processes boast the fact of excluding excess packaging keeping it a minimum and being made of recycled materials only. If ever a day occurs where MUJI decides to change these processes, the brand image will completely change, thereby making it uncertain if the customer base will continue to purchase from the business.
Another clear obstacle and vital factor is competition, which for this franchise range from household product shops and apparel retailers. The direct competition includes stores like IKEA, Costco and UNIQLO. All these business are successful worldwide, and continue to grow in consumers on a daily basis. When establishing the MUJI franchise in its location, the franchisee must take into account the surrounding stores which may pose a threat, and decide to make a few changes to stay competitive.

Products and Services MUJI is a functional multi-product superstore that possesses an extensive array of products ranging from apparel, accessories, stationery, house decor, health and beauty supplies to snacking items. All of these items are of superior quality with minimal packaging. Presently, there are around 7,000 items being sold in MUJI stores. The brand is also exemplary for the use of mostly recycled materials, as a part of their CSR practices. As the brand’s pricing slogan states, “Lower priced for a reason.”, which encompasses the fact that MUJI does not forget about quality with it’s
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