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Large companies generally make a detailed analysis of the external environment in advance of his company before doing business expansion. This environment may be a social, economic, political, and technology. Discussion conducted more directed to the macro aspects, and associated with the interests of the company. For store managers, of course, must assume that the analysis is important. Depth and detailed analysis carried out depending on the scale and size of the store.

Environmental aspects that can affect the success or failure of a store is:

Public shopping trend

If we build a store, of which we think not only of goods that will be on sale at the store, but the trend of shopping around the store also should to think about. Why? Just imagine if our store is located in a middle-class neighborhood and our shop sells branded items and highly priced. Will it sell? Obviously not. That is the importance of analyzing the trend of public shopping. In order for the store we are able to provide a product that really required by the customer.

Are customers now pay more attention to specific things in the shop? Are they better appreciate the quality? Try to get input from the above matters with the monitor through a business magazine, observing customer behavior at your store, or analyze store sales report. How is the tendency to shop for a family that both parents work? Are the mothers prefer to shop a particular item than his father? How many times a mother shopping per week?

There is a lot of questions that will guide us to know the style of public shopping. By knowing this style of shopping, then we can make a segmentation of the market for our store. Of segmentation is made, then the target and positioning of our stores will be described. And ultimately will get maximum revenue.

Economy

Economic factors have a multiplier effect on the business that we run. Exchange rate changes, then the items price in your store changed too. Fuel prices go up, then surely you must recalculate your purchase. If the purchasing power of customers shifted, then you must also be smart to treat the price of your goods.

Therefore, changes in the national economy may even global, depending on the scale of business, should always be observed for making strategic decision of our business.

For example, if you will open a new branch somewhere, investment for open new branch takes no small cost. Maybe you should borrow the funds to the bank for your new branch expansion. If you do not understand the current economic conditions, such as loan interest rates, inflation, and so forth, your loan funds could be lost. The new store do not grow, while you have to pay the mortgage. Eventually this can be dangerous for your business.

Government Policy

Never ignore this aspect of government policy. Import policy, tax laws, modern market zoning, minimum wage, etc. You should pay attention. Sometimes policies issued can benefit your business, but sometimes it will also make you trouble. However, like it or not, this should be done for the safety and smoothness of our store business.

What is the connection between government policy and our store security? Ok, let's say if you ignore the government's policy on minimum wage. You pay your employee below the minimum wage that set by the government. It could be that your store will be in riot, either by way of hijacked, or maybe even your goods stolen by your own employees. Very definitely not safe.

Technology

The changes that occur as a result of technological development, especially information and communication technology is very fast. People call this double phenomenon because its growth is always doubled. For retailers, the influence of technological development is very significant for store operations. The direction of change in the retail industry technology devices makes store operations become more efficient, faster, and often cheaper. Technologies that affect store operations including Point Of Sales, electronic payment software, customer database management, software inventory, etc..

Industry Trend

This industry trend involves the development of the retail world in which we live, for example, store formats that are currently being trends, distribution patterns, the pattern of customer service, store color design, technology trends, etc.

Competition

Retail businesses management on the one hand has good prospects, because of the potential market is huge. However, the phrase "there is no sugar without ants" is always happening. If there is a profitable business, then it will quickly emerge of new business actors who participated.

High or low intensity of competition will affect whether or not seamless business that we run. Observe new and old competitors, from their promotional strategy, to the products they sell. Everything will helps you evaluate your strategy. Victory in the competition are those who have information and devise appropriate strategies based on such information.

All these factors are beyond our power, however, by analyzing these things, we can seize opportunities for business that we run. And from the results of any analysis, we can also anticipate bad things that could disrupt our store operations.