Micro and macro environments of Pick n Pay free essay sample

The micro environment is the smallest of the three environments. This is the environment that is influenced by the market and the macro environments. Pick n Pay can control their beliefs and visions in such a way that customers become used to the way they operate. Some of their values include: honesty, integrity, freedom of speech, the best deals for their customers, a good service for their customers, staff benefits and a chance for staff members to be promoted, reward and innovation and taking individual responsibility. Pick n Pay always promises their customers fresh vegetables and fruit and will go out of their way to make sure that this takes place, if a certain type of fruit or vegetable cannot be found in that season they will note the customers of this problem and apologise for the inconvenience. Pick n Pay is a company that cares for its people, we believe in relationships; you don’t come here looking for a job, but for a career. We will write a custom essay sample on Micro and macro environments of Pick n Pay or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page (Pick n Pay official website, 19 March 2014). This shoes how much of a family business Pick n Pay is, it does this to create a â€Å"home† feeling where you can enjoy shopping. Pick n Pay’s goal is to make sure that people can look after themselves and fend for themselves at the same time as looking out for others and making sure that the community and the people around them are as well off as themselves. Pick n Pay wishes to enhance and develop their skills for the future and to continue making the lives of other people better. Market environment: The market environment surrounds the micro environment. There are many franchises of the company around South Africa and expanding northwards to other African countries. Pick n Pay has an online shopping facility to bridge a gap between the customers and the actual store itself. By using online shopping, customers who cannot get to the shop can now purchase items at the tip of their fingers, elderly people can shop for themselves and choose what they would prefer rather than getting a helper to do their grocery and clothes shopping and coming back home with items they don’t enjoy. Pick n Pay uses a term called â€Å"the four legs to the retail table† in making their business successful. These four legs consist of ‘administration,’ ‘merchandise,’ ‘advertising and social responsibility’ and the ‘people’. With these four ‘legs’ the company is able to run without a lot of complications. By advertising the company gets people to come from all over to check out their products, Pick n Pay has many advertising ideas such as making a bit of humour with the customers to put them in a good mood, for example: (Pick n Pay advertising images, 2014) These advertising ideas are clever, friendly and unique and it draws a customer’s attention. Pick n Pay wants to be able to build a comfortable and understanding relationship with their customers, Pick n Pay supplies a cash back method to attract customers by using their Smartshopper cards, this helps the employees to get a feel of peoples shopping habits and to help them with seeing when and where a promotion or sale is happening on a product they usually use. By making a good relationship with the customers, Pick n Pay is doing well with their market environment. Pick n Pay is expanding across Africa and most recent, their company will open in Auas Valley Centre and will occupy a large warehouse, as well as this there will be more parking available. Macro environment facing Pick n Pay in 2014: There is a hugely decreasing amount of ocean fish on the market which is threatening the sea food department in Pick n Pay. The WWF’s response to the deepening crisis was to seek out key retailer partners with whom to strategically work through the chain of custody, at one end informing consumers about the threat to our marine ecosystems to influence demand, while at the other engaging with the fishing industry around responsible harvesting (Pick n Pay official website, 2014). We as a community can help out this sea food crisis by supporting positive decisions made when regarding the conservation of fisheries. If we as people continue to eat illegal caught fish and seafood we will not be able to continue eating the foods we so enjoy. Weather is another factor that influences the Pick n Pay Company, for say there is not a substantial amount of rain, or the climate is not warm enough for certain plants to grow in 2014, some vegetables and fruits may not be available and this could really damage the goals and reputation of Pick n Pay.

Managed investment scheme Essays

Managed investment scheme Essays Managed investment scheme Essay Managed investment scheme Essay In Australia, investor can choose from a wide vvariety of investments which include managed investment schemes (MIS) and direct investment which consist of shares, debt and hybrid securities. Each investment scheme will a set of corporation act to protect its investor, as it is important to make iinvestors feel confident and secure. Iinvestors can choose the types of investments to invest in depending on their personal traits and ambition as the different investment contains different characteristic. We will dive in more on MIS, direct investment and hybrid investment together with each of their advantages and disadvantages next. Managed investment schemes Manage investment schemes, otherwise known as collective investment schemes, are schemes in which funds are gather from different investor to invest in a common investment, usually a high risk investment that deals with huge amount of money. Under s 9 of the corporation act 2001, a manage investment schemes consist of three elements. Investor contributes money or moneys worth, theres a generation or intended generation of a financial return or benefit and the investor do not have day- to-day control over the use of the money. Under s 601 EA(4) states that a registered MIS requires to have a responsible entity (RE) which would be responsible for any losses or damages from violating Ch 5c. The RE is also a trustee of the scheme. The RE also have to fulfil his duties, under the s 601 FC (1), he must act honestly, exercise a degree of care and diligence, act in the best interest of the members, treat all members equally and he cant make use of information gathered as RE to gain improper advantage or cause detriment to members. Under s 601 MB, Contracts is considered as voidable at the option of the investor if the MIS is found guilty of violating any of the act. The advantage of MIS is that the investment will be undertaking by a professional investment manager which could offer a better returns and risk management because of his experience and knowledge. Moreover, it can help reduce risk by diversification, it works by investing in different company, usually companies that has a negative co-relation, reducing losses if the price of one company drop. Another benefit is that it the cost is shared among the other investor. The disadvantages of MIS is the loss of owners rights, allocation and uses of funds will be determine by the fund manager. Although MIS is a very lucrative piece of investment, the amount of returns will be reduce because of the cost of the fund manager, normally they will expect a ppercentage of returns from the overall earnings. Debt financing Debt financing is a type of tool companies used to raise capital through borrowing. Creditors are entitled to fixed interest pay out and will be able to get back the invested amount at the maturity date. Debt financing are usually considered as a stable and low risk investment thus the return are lower than the others. Debt financing consist of bank finance, trade finance, debentures and private debt. Debentures is the rights to enforce a companys undertaking to repay the debt owe as stated in s 9 or the corporation act. Section 124 of the Corporations act 2001 allow companies to issue debentures and to borrow through the use of the debentures. Deoentures can De rea011y transTer ana can De llstea on tne Australlan stock exchange (ASX). The advantage of the form of investment is that the interest pay-out is fixed and the investor will be able to get back the amount invested at the predetermined maturity date. Lenders are place ahead of equity holder in the event of liquidation. The downside to this is that there wont be any growth on the principle of loan because it is fixed. Unlike equity holders, creditors cant get involve in the day to day operation of the company or vote. Equity Equity financing is one of the ways a company can use to raise money through the sales of shares. Shares consist of ordinary shares and preference shares. By buying the shares of a company, investor will also gain owinership of company, the size of the owinership will depend on the amount of shares one held. Under section 124 of the corporation act 2001, any of the company will be able to issue shares but only a ublic company will be able to offer its shares to the public. Disclosure document such as the prospectus, profile statement and offer information statement are required under chapter 6d of the corporation act. The prospectus offers protection to the investor who wish to purchase shares from a company by disclosing all information. The benefits of investing in shares is the ability to collect dividends, dividends will be decided by how much the company has made. Another major benefits is the ability to make capital gain by selling shares, because shares are known to be volatile, prices may move up and down at any time, capital gain can be ade if shares is sold when it is rising. The negative side of investing in shares is that it is risky. Shares prices might crash and investor would suffer losses. Furthermore, equity holders are ranked before bond holders when the company goes into liquidation, shares holder may or may not be able to get their money back. Hybrid securities Hybrid securities are a form of securities that combines debt and equity instruments. The most common form of hybrids is convertible bonds. Convertible bonds allows the owner to convert bonds into shares at todays price. The main advantages is that it as a fixed interest repayment like a bond, iinvestors can also choose to convert it to a shares if the company is doing well. Making a profit from the dividend or by capital gain. The downside is that it has a low interest pay out as compared toa bond and it is ranked after bonds holder in the event of liquidation. I would invest the $10 000 into government bonds. Government bonds are consider as one of the safest investment and it will be logical to invest in it as I wanted income first and growth second. Besides, I would be able to collect the interest pay out and the invested amount at the maturity date.