Answers: 1

PESTLE analysis for Carrefour entry strategy into India can be understood as:

PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing

principles. Moreover, this concept is used as a tool by companies to track the environment
they’re operating in or are planning to launch a new project/product/service etc.
Here Carrefour is a French Retail giant which wants to enter into India so, it needs to look upon
all the below mentioned pointers.

PESTLE is a mnemonic which in its expanded form denotes P for Political, E for Economic, S
for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye view
of the whole environment from many different angles that one wants to check and keep a track of
while contemplating on a certain idea/plan.
The framework has undergone certain alterations, as gurus of Marketing have added certain
things like an E for Ethics to instill the element of demographics while utilizing the framework
while researching the market.

There are certain questions that one needs to ask while conducting this analysis, which give
them an idea of what things to keep in mind. They are:
 What is the political situation of the country and how can it affect the industry?
 What are the prevalent economic factors?
 How much importance does culture has in the market and what are its determinants?
 What technological innovations are likely to pop up and affect the market structure?
 Are there any current legislations that regulate the industry or can there be any change in
the legislations for the industry?
 What are the environmental concerns for the industry?
All the aspects of this technique are crucial for any industry a business might be in. More than
just understanding the market, this framework represents one of the vertebras of the backbone of
strategic management that not only defines what a company should do, but also accounts for an
organization’s goals and the strategies stringed to them.

It may be so, that the importance of each of the factors may be different to different kinds of
industries, but it is imperative to any strategy a company wants to develop that they conduct
the PESTLE analysis as it forms a much more comprehensive version of the SWOT analysis.
It is very critical for one to understand the complete depth of each of the letters of the PESTLE.
It is as below:
1. Political: These factors determine the extent to which a government may influence the
economy or a certain industry. [For example] a government may impose a new tax or duty
due to which entire revenue generating structures of organizations might change. Political
factors include tax policies, Fiscal policy, trade tariffs etc. that a government may levy
around the fiscal year and it may affect the business environment (economic environment)
to a great extent. Being one of the largest democracies in the world, India runs on a federal
form of government. The political environment is greatly influenced by factors such as
government’s policies, politician’s interests, and the ideologies of several political parties.
As a result, the business environment in India is affected by multivariate political factors.
 The taxation system is well-developed and several taxes, such as income tax, services tax
and sales tax are imposed by the Union Government.
2. Economic: These factors are determinants of an economy’s performance that directly
impacts a company and have resonating long term effects. [For example] a rise in the
inflation rate of any economy would affect the way companies’ price their products and
services. Adding to that, it would affect the purchasing power of a consumer and change
demand/supply models for that economy. Economic factors include inflation rate, interest
rates, foreign exchange rates, economic growth patterns etc. It also accounts for the FDI
(foreign direct investment) depending on certain specific industries who’re undergoing this
analysis. The economy of India has been significantly stable, since the introduction of the
industrial reform policies in 1991. As per the policy, reductions in industrial licensing,
liberalization of foreign capital, formation of FIBP and so on, has resulted in a constant
improvement of India’s economic environment.
3. Social: These factors scrutinize the social environment of the market, and gauge
determinants like cultural trends, demographics, population analytics etc. An example for
this can be buying trends in India for different sections of the society lie the lower class,
middle class, upper middle class, etc. Carrefour need to evaluate all the social trends the
various attributes of the different sections of the Indian society as India is a diverse and
vast country in terms of the social pattern.
4. Technological: These factors pertain to innovations in technology that may affect the
operations of the industry and the market favorably or unfavorably. This refers to
automation, research and development and the amount of technological awareness that a
market possesses. As for Carrefour it can look up to both self served stores as well labour
managed and guided stores as reliance fresh, v mart, etc. technological review can help a
lot the Carrefour in saving its various costs as India can provide it very cheap labour.
5. Legal: These factors have both external and internal sides. There are certain laws that
affect the business environment in a certain country while there are certain policies that
companies maintain for themselves. Legal analysis takes into account both of these angles
and then charts out the strategies in light of these legislations. For example, consumer
laws, safety standards, labor laws etc. As well as selling only those items which are
permissible by the government of India.
6. Environmental: These factors include all those that influence or are determined by the
surrounding environment. This aspect of the PESTLE is crucial for certain industries
particularly for example tourism, farming, agriculture etc. Factors of a business
environmental analysis include but are not limited to climate, weather, geographical
location, global changes in climate, environmental offsets etc.

Thus, Carrefour as retail brand to enter India has to evaluate all these points very carefully for its
successful operation here, as it has many big competition already.
 Answer: 2

As the new CEO of the company, I would suggest the following ways and means of resurrecting
the brand Ambassador in following manner:

Here resurrecting the brand Ambassador means bringing it back to life, as the brand stopped its
production since 2014, now in 2018 to bring it back to the market again is the thing to be done.

Following are the ways in which I as the CEO and with my company can bring back the age old
fabulous Ambassador to the market again:

1. Assess strengths and weaknesses: To move forward, sometimes it’s best to take a step
back and honestly evaluate a company’s strengths and weaknesses. Start off by
determining what the brands current position in the market place is, where the brand has
been in the past, and define where you want it to be. It is vital to understand what makes
your business different and better than the competition. Companies that identify and
demonstrate differentiation will better communicate that value to the market.

2. Reevaluate the target market: A company will rarely introduce a product or service that
perfectly fits its original target segment. The product may need to be changed slightly, or
the company may be targeting the wrong type of customer. Companies should reevaluate
target markets and segment customers based on perceived needs and requirements.
Redefine who you want to cater your brand to. If the current audience isn’t placing a high
enough level of value on it, think about an audience who might use it in ways that enable
you to regain value. Aligning client needs with the company’s capabilities is critical.

3. Determine how customers benefit: Simply describing a product and picking a target
market is not enough. Companies should spend the time to understand how customers
will use the product or service.

4. Craft a compelling story and create a plan: It’s very important to document a story that
will lead the brand from its current position to the position where you want it to be so
employees, partners and customers can tell the same story. Take the time to identify and
document the most important aspects of the product and brand that are special. Changing
the packaging or changing what a product looks like is usually a good start. Some brands
do not keep up with the times and leave their products looking too dated or obsolete.
Sometimes it is best to give a product a new look while also playing off of the brand’s
history.

5. Secure customer testimonials: The best advocates for any business are satisfied
customers. Spend time with long-time customers and ask them for a testimonial or to be
the subject of a video case study or press release. Having customers tell the world how
much they love your product and why they love your product is invaluable.
 6. Create valuable content: It’s impossible to sell to all customers in the same way. Today,
buyers are much better educated about products than customers in the past. Customers
have many more resources to learn about products (such as online reviews) and it is much
easier to compare your products with competitor’s products. Technical buyers are
especially well informed. Providing information in a format that buyers want to consume
at every stage of the sales cycle is critical.

7. Communicate widely: Social media and ecommerce sites such as: Twitter, LinkedIn,
Facebook and Amazon have changed the buying experience. Reaching an audience now
means communicating widely. Take the first step and begin building followers by
engaging in conversations about what is important to them. Customers don’t just want to
hear about products all the time. Become a thought leader and trusted resource.

8. Be consistent: Reviving a brand is as much about consistency as it is about creativity.

Once the company defines the brand and determines how to communicate it, the next step
is to consistently communicate key messages.

9. Believe in the business: Embrace the company’s vision of the brand and target market.
The more committed leadership is to the company’s view of the world, the more people
will believe in the brand.
10. Reviving a brand takes commitment. To revive a brand and put the company back on the
right track is no easy task. Take the time to assess strengths and weaknesses of the brand.
Determine the past and current value of the brand a craft a plan/story to build it up to
where you want it to be. Communicate this value to customers and communicate
consistently.

Thus, while using all these ways and means one should also take into notice the following
determinants for building a competitive edge at the time of resurrecting the brand.

Benefit

What is the real benefit your product provides? It must be something that your
customers truly need and that offers real value. You must know not only your product's features,
but also its advantages how they benefit your customers. That means being constantly aware of
new trends that affect your product, especially new technology. For example, newspapers were
slow to respond to the availability of free news on the internet. They thought people were willing
to pay for news delivered on a piece of paper once a day.

Target market

Who are your customers? What are their needs? You've got to know exactly who buys from
you, and how you can make their life better. That’s how you create demand, the driver of
all economic growth.

Competition
 Have you identified your real competitors? That's more than just similar companies or products.
It includes anything else your customer could do to meet the need you can fulfill. Newspapers
thought their competition was other newspapers until they realized it was the internet. They
didn't know how to compete with a news provider that was instant and free.

Innovation

A strategy of innovation gives you a competitive advantage by developing products that

differentiate your company and meet customer needs more effectively than competitors. Focus
your product development program on features that offer customers exceptional value or unique
benefits. Those innovative features will provide a strong advantage because competitors will find
it difficult to imitate them or provide substitutes that offer the same value.

Customer Experience

Knowledge of customers and exceptional service are the only sustainable form of competitive
advantage, according to Forrester Research. To achieve that, you need to invest in four key areas:
customer research; quality of customer experience and customer service; sales channels that
provide high levels of customer information; and marketing material that uses customer
information to create high levels of personalization.
 Answer: 3

A:

Porter’s five forces analysis:

Porter's Five Forces is a simple but powerful tool for understanding the competitiveness of your
business environment, and for identifying your strategy's potential profitability.

This is useful, because, when you understand the forces in your environment or industry that can
affect your profitability, you'll be able to adjust your strategy accordingly. For example, you
could take fair advantage of a strong position or improve a weak one, and avoid taking wrong
steps in future.

The tool was created by Harvard Business School professor Michael Porter, to analyze an
industry's attractiveness and likely profitability. Since its publication in 1979, it has become one
of the most popular and highly regarded business strategy tools.
These are:

1. Competitive Rivalry. This looks at the number and strength of your competitors. How many
rivals do you have? Who are they, and how does the quality of their products and services
compare with yours?
Where rivalry is intense, companies can attract customers with aggressive price cuts and
high-impact marketing campaigns. Also, in markets with lots of rivals, your suppliers and
buyers can go elsewhere if they feel that they're not getting a good deal from you.

On the other hand, where competitive rivalry is minimal, and no one else is doing what you
do, then you'll likely have tremendous strength and healthy profits.

2. Supplier Power. This is determined by how easy it is for your suppliers to increase their
prices. How many potential suppliers do you have? How unique is the product or service that
they provide, and how expensive would it be to switch from one supplier to another?
The more you have to choose from, the easier it will be to switch to a cheaper alternative. But
the fewer suppliers there are, and the more you need their help, the stronger their position and
their ability to charge you more. That can impact your profit.

3. Buyer Power. Here, you ask yourself how easy it is for buyers to drive your prices down.
How many buyers are there, and how big are their orders? How much would it cost them to
switch from your products and services to those of a rival? Are your buyers strong enough to
dictate terms to you?
When you deal with only a few savvy customers, they have more power, but your power
increases if you have many customers.

4. Threat of Substitution. This refers to the likelihood of your customers finding a different way
of doing what you do. For example, if you supply a unique software product that automates
 an important process, people may substitute it by doing the process manually or by
outsourcing it. A substitution that is easy and cheap to make can weaken your position and
threaten your profitability.
5. Threat of New Entry. Your position can be affected by people's ability to enter your market.
So, think about how easily this could be done. How easy is it to get a foothold in your
industry or market? How much would it cost, and how tightly is your sector regulated?
If it takes little money and effort to enter your market and compete effectively, or if you have
little protection for your key technologies, then rivals can quickly enter your market and
weaken your position. If you have strong and durable barriers to entry, then you can preserve
a favorable position and take fair advantage of it.

Thus, Geely, a Chinese automotive major to enter to India to offer its automotive brands has
to perform all the above five forces analysis for it’s successful operation in Indian markets
and to check its profitability and it competition.
B: