Music Company With The Changing Economic

Question: Describe about the Music Company With The Changing Economic? Answer: Introduction The case study is about a Music Company With The Changing Economic, social, political and technological changes has faced crisis situation and now is aiming to revamp its whole structure and open new stores across the nations. HMV Retail Ltd was one of oldest retail company founded in 1921 in London, UK. However with the growing influence on external political, environmental, social and technological factors it was on the verge of collapsing but however as saved by the HILCO Company it now aims at restructuring itself by using these very factors which would now be in favor of these. PEST analysis for HMV The impact of the external factors has been ignored by this music company over a period of time. But now they have realized how important it is to analyze their situation of the company and design in accordance with PEST analysis. PEST is one of the most important marketing models. It covers the political, economic, social as well as technological aspects that need to be kept in mind while chalking out a market strategy for a company. It is used for scanning the environment, to see and assess the competitors and by reviewing all this, ultimately make them better and stable for the market. There are many synonyms uses for PEST such as PEST, PESTEL, STEEPEL, SLEPT etc. The aim of this analysis is to go deep and understand the root of the problem and try to so as to why a problematic situation has arisen and how can it be solved. Political: This external factor plays a very important role in the business situation. The varying political factor of the country i.e. if the country is facing a political crisis or there are new laws, all these contribute to the marketing of the country. In HMV we notice that being it was initially a music store where carious CDs and other things we sold. But due to various legislations that have evolved over time, that is has acted as a barrier in the working f the company. For e.g. Countries have banned using social networking and other sites which might be a loss for HMV as well. HMV has been left with only 285 locations, in Ireland and United Kingdom, with some stores in Hong Kong, Canada and Singapore. The political legislations passed in these countries affect the local and international markets of HMV. Success is only seen in Canada as Hong Kong and Singapore having capitalist economies and developed, HMV has not be able to sustain in these places and due to other factors their other outlets in places like China and USA have been shut down. Economic: The economic situation of a country has to be stable so the various chains of companies functions smoothly. Economic factor however did not work well for HMV as many times the country has witnessed an economic depression. This meant that the people wanted to refrain themselves from spending as far as possible which meant that CDs being not important in the priority list unless you are a diehard fan, people would not send on these unnecessary areas as it would increase their expenditure. In 2011, as there was a rise in the taxation by 20%, it hit the customers hard as they could not spend on unnecessary items. In 2009, it is seen that there was a massive upscale in unemployment and further rose in 2010 and as a result there were factors which we conflicting in the industrial sector. People had less to spend due to tight budget. Social: It is expected that there will be fall in the sales of CDs and DVDS by 10% and 5% respectively as the people are option for streaming downloading now. However the company has introduced now the super audio CDs to tackle this situation. It is noticed that music has become a very important part of our lives. It is seen that a considerable amount is spent on music by an average person now. Books are now replaced by laptops and computers and DVD and CDs are now being used for facilitating teaching. MP3 players and computers or laptops are now used as alternatives for these DVDs and CDs as they have more storage space. Technological: HMV has technological advancements which have helped them stay in the retail market till now. It has now launched a social networking site called Get Closer which is giving competition to other online libraries of music. It can now synchronized with iTunes which is an advantage, By introducing various new methods like pay and play any games, HMV is trying to come up in the marketing world. Job Description Marketing directors are one of the highest posts in any company. A marketing director works on the upper executive authorities. Their main job is to supervise the administrations related to the marketing of the product the company sells across the borders covering a wide range of activities like advertising of the products and also find ways for selling it in the international market. They are also entrusted with responsibility of initiating strategic plans for a company and correct strategies which would work in the favor of this music retail chain as it would increase the selling of the products. Their main goal is to coordinate the marketing departments set across the various countries. According to the PEST analysis we have covered the director is to develop plans to revamp the situations in Singapore Hong Kong and other countries mentioned that have shut down where the sale of the products are very sloppy. Also he has to develop such plans using the technologies and schemes so t hat this industry can stand in competition with the other leading industries. Person Specification A marketing director required for this company should have a qualified degree along with some experience in the marketing fields as HRM needs personnels to market their products and start from the scratch. A person should have some technical and economical knowledge of the prevailing conditions n the country and should know they should be tackled. They should be young with new innovative ideas so that there is an expansion of their market. They should also have stable background and experience of working with other well known companies. The person who has idea about the need of the hour and has excellent reading and writing skills along with ability to connect and communicate properly with the other departments as well so that the company does not collapse due to a dysfunctional system. As the PEST analysis suggests a strong would be required to keep the company close and maintained. Job advertisement The job advertisement should be like Marketing Director required in HRM Retail Ltd. Young and experienced persons with graduate degrees are eligible to apply for the job. A background check of the company is a must in order to understand it current structure. A person should have innovative idea so as to compete blatantly with the economic, social and technological spheres as opposed to the other companies in market. Selection strategy For identifying and picking out the best candidates one first needs out the back logs which the company has been facing. The company has been facing many back logs if we go to analyze the PEST content thus we first need to point out the areas where the company was lagging behind and how the company needs to buckle up by choosing appropriate candidates with proper selection methods so as to choose the right person who identify these problems and work towards achieving the developmental goals assigned by the company. After scrutinizing and covering all the aspects of the PEST analysis, three reasons have been identified for the failure of this music retail industry. The reasons being: The authorities leading the company had failed to recognize the overwhelming importance of online business cropping up now. They did not realize that ignoring the online aspect as a whole would lead to the downfall of the company. When they realized it was too late as a lot of competition had already emerged in the market scenario. It would take another set of years for the company to stand on its own field. Thus a person who could propose proper short term stability programs which would bring the company back on the line would be hired. However the plan would be thoroughly assed and put into practice first to judge it viability. Over the last ten years the banks have been constantly putting in money into the company as they are hoping to drive out profit in the long run by giving debts to HMV. However they fail to realize that the debt of the company has been increasing and the profits margins have constantly being decreasing. This shows that the new marketing director should be able to cope up with this crisis situation immediately and in affective suitable manner. Finally the brand loyalty stopped having an impact on the people. The consumers were attracted to the company due to its brand name and loyalty. But after the decreasing importance of the DVDs and CDs in the market the customers were not attracted somewhere else i.e. the new methods of downloading and streamlines were had given a tough competition and almost thrown out HMV from the market. However the aim to appoint the new marketing director is to get back this retail outlet again in market by applying the new technologies so that they can compete with the online music libraries which were available on the internet. Thus the main job of the marketing director would be getting the company back to its toes. However for fulfilling all the criteria one must select the right directors so that the company is motivated in achieving its desired goals. The marketing director of the company would first has to undergo a written exam consisting of a set of questions which they have to answer precisely and which is the better than the rest of the answers this would extract the creamy layer from the whole lot of applicants that have arrived. This questioned based exam does 70% of the job in selecting the candidates as the questions cover a wide range of topics that is covered at one go. The way a person answers tells a lot about the personality traits which would help to judge whether the person is eligible for a job. The question pattern is set up in such a way, that it is only exclusive for selecting candidates for HMV and it has been the best way by which they have been selecting their candidates and now their managing director. The questions cover a wide range of issues starting with test of aptitude, writing and analyzing skills, test of the basic knowledge skills of the current social, technological, political and economic scenarios prevailing in the country. The question pattern as seen earlier was for selecting the candidates for higher administrative positions in the company. The question pattern was like: The person would be given a situation a he/would be required to analyze it in a proper manner. However a person cannot jump to a conclusion as proper judgment and thorough study of the report provided was very essential. Accordingly, depending on the questions marks were allotted for each answer. Candidates were asked questions like reasons for declining of the music retail stores along with their factors. The candidates were required to make a thorough assessment of the situation. The loophole which distinguishes the people with higher ability was that, people having proper knowledge and experience gave a backdrop and also gave an account of the impact of things like cost revenue etc. thus they were put on the higher scale than the others. They were asked how they could bring about a change in the company in response to the marketing strategies. Precise and to the point analysis was required. The able candidates would identify proper economic factors like price matching in terms of competitiveness in HMV Company. In such a way candidates were given sets of issues covering a wide range of information related to the PEST analysis like what measures the company should take to gain loyalty of the customers (social aspect) or how could they increase their turn over by using new techniques (economic and technological aspects). After getting thoroughly grilled by the question only a handful candidates are eligible for the personal interview after that where the head of the companies have a direct contact with the persons and judge their personal traits and skills accordingly on the basis of the marks scored combined with the performance in the interview one gets through the position. However all the procedures are easier said than done. A person with intelligence, high marketing strategically plans with good balance and success sheet of the past is hired as the marketing director for HMV Retail Ltd. References Abhishek Gupta. (2013). Environment PEST Analysis: An Approach to External Business Environment. International Journal of Modern Social Sciences. 2 (1), 34-43.Adeoye, Abayomi Olarewaju Elegunde, Ayobami Folarin. (2012). Impacts of External Business Environment on Organisational Performance in the Food and Beverage Industry in Nigeria.. British Journal of Arts and Social Sciences. 6 (2).Alex Stevenson. 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