Introduction Management Sheng Siong

Sheng Siong

1. Introduction

Recently, supermarkets have been a popular choice for consumers to purchase their groceries and household items, because of its long hour operations and conveniences where consumers are able to do their shopping at once, as supermarkets are able to provide a wide selection of food products and household items with immediate needs. PESTEL analysis is an integral tool that gains insight of the organizations external environment factors and how they are interdependent. PESTEL includes political, economic, social, technological, environmental and legal. As these external environmental factors are identified and analyzed, organizations are able to ensure the most comprehensive evaluations of the factors that may impinge on them and meet their objectives. (Morrison.J, 2006). Therefore, this assignment will be discussing on Sheng Siong by using the PEST analysis and Porter’s Five Forces to identify the various factors of effectiveness impact and influences in the external environments. Sheng Siong, is now one of the largest groceries retailers ranking at top 3 in Singapore. Founded in 1985 by Mr Lim Hock Chee, they currently owned 35 groceries chains throughout Singapore today. They are located mainly in HDB neighborhoods areas across Singapore conveniently and comprehensively providing both wet and dry supermarkets widely ranged for consumers with popular household and food products for affordable prices. (Sheng Siong, 2015)

2. Discussion

Politics

Political legal issues and factors are the crucial aspect of part of the analysis for organizations are currently operating in the environment within a country. It refers to various ways of how the government intervenes, control and affects companies and economy. It plays an integral role on how a business conducts and operates in the external environment. (Bartol, Martin, Tein, & Matthews, 2005). The significant political factors affecting Sheng Siong on the external operations is the foreign workers policy in Singapore. As the current foreign scheme of workers levies and quotas are being controlled ensuring that employers continues to employs Singaporeans, the cost of the manpower will be an rising issue mounting across the entire economy without exception, as a result the supermarket industry will be facing a tightening over the availability from a tighter labor market as this might be an threat to Sheng Siong. (MOM, 2015) Taxation is one of the important factors that a business faces in Singapore. As taxes had been a continuously rising factor of high inflations mainly due to the cause of CPI, subsequently these problems will affect the spending powers of Singaporeans, as these might be a threat of profitability and future growth for Sheng Siong due to various huge competitors such as NTUC Fair Price, Dairy Farm International Holdings and Giants. (Singstats, 2015)