Impact of Market Environment on Lays Company

Impact of commercialise surround on drop offs CompanyThe behavior of scheme in their shargon environment and the conditional relation of the world-wide factors that shape national phone line activitiesPapia Hasan PopyExecutive abstractThis report is based on different types of concern information and the issues and constraints at heart the organization.Name of organization positionsChapter 1 Introduction stations is a name of a potato chips made from Canadian spuds. The owner of the family is Herman W. set up. He first started producing potato chips in his machines because he finally shaped potato in chips with flavors. Lays was and then first snack to be promoted on Television bowl 1944. Soon it became so popular snacks in all over Canada. And by 1977 Lays became the most preferable chip brands and dominating over the market. Due to its flavor and taste Lays many an some new(prenominal)(prenominal) mint love Lays. They basically manufacture and produce differen t flavors of potato chips and defecate able to create their brand value.Chapter 2 Background of the think2.1 Objective of the study2.1.1 Broad impersonalThe behaviour of organizations in their market environment.The significance of the global factors that shape national worry activities.2.1.2 Specific accusiveHow market structure de considerationine the pricing and output decision of furrowThe demeanor in which market forces shape organizational responses.How the telephone line and heathenish environments shape the behavior of an organizationSignificance of outside(a) workmanship.The impact of global factors on business organization.The impact of policies of the worldwide trading communities on business organization.2.2 Methodology2.2.1 Area of studyThe current situation of Bangladesh.2.2.2 Sources of dataWebsite, Outlets, Books, leaflet and Newsletter.2.3 Limitations of studyCommunication gap.Intolerable traffic jam made dilemma. network failure while working with net. Chapter 3 Analysis and Findings occupation 8 (LO 3.1) Explain how market structures determine the pricing and output decision of the organization.Market structure It depends on the number of sullyers and suppliers in order to run a business.Types of market structurePerfect argumentPure monopolyMonopolistic competitionOligopolyPerfect competition In this competition in that respect argon many buyers and many sellers. The overlaps ar alike and entrance and exit is rattling easy. If the equipment casualty is increased then consumer leave alone move to another product if the value is extremely utmost as output depends on buyers learn. Lays is selling different flavors of potato chips and their rivals are sun chips, Alooz and Pringles.Pure monopoly Only one seller who dominate the whole market. They normally charge high outlay as there is no competitor and spend a lot on branding and R and D. notwithstanding this is not applicable for Lays as there are many competitors a re available in the market.Monopolistic competition on that point are many sellers but market is dominated by hardly a(prenominal). cross loyalty has a competitive advantage and firms are tingeed by Competitors. Lays product is varies in flavors but all products are potato chips and the price is reasonable. The output depends on the take on of the product.Oligopoly There are many buyers but few sellers. Huge capital needed so immersion and exit is very difficult and each seller controls a manicular portion of the market. Price and output is affected by competitors. Lays does not fol execrable this.Task 9 (LO 3.2) Illustrate (with example) the way in which market forces shape organizational responses.I have chosen Lays to describe the shape of market forces.Demand Willingness to buy a product and depends on desire and affordability. It is affected due to price, income level, veer product and competition.Elasticity of demand How rubbery the demand is. If price increases the n demand decreases and vice-versa. If income level remains unchanged and price increases then demand decreases but if income level increases then demand is stable.Lays is an elastic product so they need to keep their price stable because alternative products like Alooz and Sun chips are available in the market and overly they are the competitors of Lays. If the price of Lays increases then customers result switch to Alooz.Supply The quantity of commodities for sale and depends on profit. It is affected by price of raw materials, technology, technique, toil price and so forthElasticity of summate If price increases then bring increases and vice-versa.Lays should not reduce the risk to increase their price. If price increases the sales may decreases as respite products are available in the market. They should keep the price stable and put forward steady supply of products or else they might lose customers and their sales.Task 10 (LO 3.3) Judge how the business and heathen e nvironment shape the behaviour of the organizationBusiness environment consists of factors that affect the business and its activities.There are few factors which affects business environmentPolitical FactorsLegal FactorsEconomic FactorsSocial and pagan Factors etc.But I go forth focussing on cultural and social factors which accommodateDemographic and commonwealthHousehold and FamiliesAttitudes to work religionNationalismAttitudes to male and female rolesethical motive etc.Demographic and Population The population of Bangladesh is somewhat 18 cores approximately so more labor is available for work and there is similarly an increase in demand for unslopeds. Lays have better opportunity to do business here because of the large population which makes available of labors and buyers.Household and Families Now a days there are huge number of roast families compared to case-by-case families. So buying behavior get out be more for joint families.Attitudes to work The working en vironment inside the factory of Lays is friendly and women are participating there in large numbers. devotion Most of the hatful of Bangladesh are Muslims. So Lays should supply halal products.Nationalism In Bangladesh nationalism is less as wad are purchasing more bited product then their orbits product.Attitudes to male and female roles Now a days twain men and women are working together in the same environment.Ethics Lays is doing business ethically.Political factors decision taken by policy-making relation about the public expenditure and taking taxes. This involves the political perceptual constancy of a country which favors business. Sometimes government gives grant, subsidy and loans on number one interest rates for the development of a business. They maintain the infrastructure of a country thus developing communication links.Enhancing skills of population Now a days education and training courses are available to make population skilled in their desired field. Thi s pull up stakes increase the efficiency of labors which depart favor business for Lays.Task 11 (LO 4.1) Discuss the significance of international trade to the organization worldwide trade Doing business beyond the boundaries of a country.International trade is important for expansion of business and change magnitude profit. To acquire resources and to reduce cost international trade is important. It creates an identity in other countries and also get tax advantage.Lays is doing international business.Global Business Lays is also doing global business. They have production corrects in different countries of the world. Now they want their production plant in Bangladesh.Multinational Company Lays is having their operation crossways the globeMicro Multi-National Companies Companies doing business through internet and Lays is not doing business through internet.Reasons behind increased growth of International BusinessLays is a Canadian company doing business globally to get technol ogical advancement, easy and quick communications, creation of trade agreements among countries and Bangladeshi government is more liberal to the companies who want to do business here.Bangladesh is now developing so Foreign Direct investment is very important for us. It creates employment opportunity, GDP growth and exchange of knowledge, technology, technique, culture etc. Lays is a international company so they are investing money in our country.FDI in BangladeshFDI in Bangladesh has some opportunities and threats which includeThe opportunities are huge markets, availability of labor at low cost, congenital resources, low production cost, liberal government and citizens etc. So Lays can take advantages in Bangladesh.The threats are political unstableness of Bangladesh, lack of infrastructural facility, unavailability of some raw materials, lack of skilled gentleman resources and efficient management etc. These factors must be ob lookd by Lays before doing business in Banglade sh.Task 12 (LO 4.2) Analyse the impact of Global factors on the organizationImport- Goods and service purchased from other country.Export Goods and service sold in other country.Free trade- Allowing people of a country to buy and sale their product as per their want. veer rate Price of one country currency in term of other country currency.Protectionism Establishing artificial barrier to discourage foreign trade in order to save the interest of local industry.Barriers to trade are three types. born(p) BarriersTariff barrierNon-tariff barrierNatural barrier- Natural things include keep, row, social system, legal system and culture and government has no control on this barrier. As Lays is a international company they need good infrastructure like proper distance route to supply their product and service to customer without it Lays ordain not be able to reach their products to customers which results in losing customers. meet language should be used inside the organization and wit h the customer in order to maintain good relationship. If employee does not serve with proper language with customers and employee, they will fail to earn customer objective and organization objective too.Tariff barriers It is imposed by government which makes imported goods costly it affect Lays a lot because they are multinational company and they import huge amount of product from various countries. If the cost is high they would not able to bring the sufficient amount of products in Bangladesh and it will affect their position in their market place. Due to high cost less product is supplied to customers so tendency of using imported product is affected. It also reduces competition from foreign product.Non-tariff Barriers- It is imposed by government other than tax/duty/Levy.Quota A limit on quantity for original goods that can be imported. If Lays do not import the quantity of product they need for customers demand they would not able to serve people which will have a great im pact on. trade embargo Complete ban against importing from exporting to certain country. Lays cannot supply their product to those countries where embargo is given.Customer regulation Make the entry hand for foreign product.Dumping Selling product at a very low price to out-perform competitor in order to arrive new market. This is resist by Anti-Dumping law set by government to protect local industries.Task 13 (LO 4.3) Evaluate the impact of policies of international trading communities on the organization.International trading creates international links among countries which is good for business.International Trading Communities include SAARC, G8, BIMSTEC etc.If Bangladesh did not take part in the international trading communities it will affect Bangladesh and Lays will not be able to do business. There will be no free trade among the member of the countries. The tax duties will be high and the product price will be also high as a result there will be less demand and supply of in ternational products, which will affect Lays. Protectionism will be greater. Exchange of raw materials will be less.so there will be less production of Lays which will create bad impact in the society. Exchange of culture and set will be hampered. It will mainly affect Bangladesh as they will lose their neighbour as well as their helping opportunity.Task 14 break down a decision whether business environment of Bangladesh is approving for starting the operation/ manufacturing plant/ showroom/ branches of the organization or not. Give proper justification behind your decision. Do you have any testimonial regarding these issues?Lays can start their operations in Bangladesh because potatoes are produced in Bangladesh in large quantities. They can get labors at low cost and tax advantage as Bangladesh government is liberal to foreign investors. They can increase their sales and their brand name in Bangladesh and the political situation is stable now. I would like to suggest some rec ommendation to Lays before operating in Bangladesh.Chapter 4 testimonyAs many substitutes are available in the market so they must focus on quality.They must focus on price because Alooz is charging Tk 15 for each while Lays is charging Tk.30 for each miniskirt pack.If they do not decrease their price they must provide top-notch quality product to create their brand image.They also must focus on their pacaging so that it looks attarctive so that customer get influenced.They must go for horse cart rally to make people aware about their product.They must offer some short term incentives to promote their product. much(prenominal) as givng gifts for children.Chapter 5 ConclusionLays is undoubtedly an effected organization that emphasize on maintaining quality product and use kisser in advertisement for their promotion. Although there are many difficulties, Lays has very good brand image and customer acceptance for surmount quality product. They are going for continuous survey for the development of their products and service.References1. Lays. 1944. Lays white potato Chips Simply Made. Simply Good. (TM). ONLINE Available at http//www.lays.ca//simplygood/. Accessed 15 March 14.Bibliographyjournal writingLecture given by Kashfiya mam