s relates directly to the company’s emphasis on marketing and distribution, the concentration of its manufacturing and product diversification to remain competitive in relation to its main largest competitors in the market place. External and Internal Forces Shaping the Company:1. PEST ( factors influencing Le Creuset in the outer environment) Political: Legal regulations in the host market Political risks in the host market The need for a validated or general license in certain markets Economic: Company is highly exposed to currency fluctuations. Production is situated in France but profits are reported in the British pound. The French franc and the pound are the most important currencies thus together with dollar-the US being a chief key market too. Thus the movement in these currencies influence directly the translation of the company’s profits and its costs of production The level of economic activity recorded in each geographical market also effects company’s performance. In 1993 for example profits were badly effected by recession in the French market Social: Demand conditions: the demands and tastes of society influence product design and development There exists a tension between national market need and the corporate brand image worldwide (there is little overlap in the top ten products in the three key markets of France, UK and USA). A balance should be somewhat reached. Technological: Appropriate technological development especially in computers should be applied to reduce production costs and increase levels of efficiency Technological development in the form of increased automation in the production process can lead to a shift in the concentration of personnel in the company-overall decrease in employees especially in production and in comparison increase in the relative number of employees in the f...
