Retail Stores: External Strategic Environments For Department Stores

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Part II. External Strategic Environments for Department Stores (SIC 5311) Department store globalization. Retail stores are focusing on factors that affect strategic environments in globalization. Drastic declines in prices of ocean freight per ton, air transport per passenger mile and policies leading to the opening of new markets have played a major role in the expansion of trade in recent years (Krugman, Paul 1995). Domestic stores, with the advent of the internet, no longer need to have a physical presence in these new revenue outlets, and can work diligently with their manufacturers and suppliers to grow and reach customers worldwide. Cost savings passed on through the value chain will go to the bottom line. The same free flow that facilitates these advantages also came with the free flow of information like manufacturing techniques and other methods that may have originally given some department…show more content…
It is clear that this new global phase is both creating opportunities and threats for both developed world companies as well as those from developing countries (Kluyver, Pearce, p37, 2012) Department store corporate social responsibility: The triple bottom line, where environmental and social dimensions are included in the traditional measures of stakeholder value applies to department stores just as much as most businesses that deal in today’s service sector. (Kluyver, Pearce, p45, 2012) In this era of stakeholder awareness and rapid scandal dissemination, not focusing on responsible business can certainly backfire and ruin a company’s brand and threaten their entire existence. Doing the bare minimum that the law requires is just not enough in this new environment. Department stores have certainly heeded this threat, and are actively pursuing sustainable practices. Activism and fierce competition makes this

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