Domain: Strategic Management
Words: 6 slides
THE HOUR GLASS
Political: The political status of Singapore has been democratic since its independence. The influence of political affairs on corporate sector is quite low. The Hour Glass Ltd being a multinational firm has managed to developed effective relationship with the Government for reducing political barriers (Dubois, Czellar & Laurent, 2005).
Economical: The economic considerations are quite crucial The Hour Glass Ltd as imported products failed to capture market considering the fluctuating currency rates. The performance of the company has been remarkable with 15.11% ROI and 15.24% ROE in the year 2014-15.
Social: The social differences with China is a reason for worry for multinational operators such as The Hour Glass Ltd. Tourism Laws implemented by China have reduced the foreign travelers in Singapore and thus sales of luxury retailers have taken a fall (Kapferer & Bastien, 2009).
Political: Cortina Group has mainly focused on expanding their markets along the Asia Pacific Belt. The internal relations between Singapore and countries such as Taiwan, China, Malaysia, Thailand thus can influence the operations of Cortina in the international market place (Caniato at al. 2008).
Economical: Although the global recession has created challenging scenario for luxury retailers, Cortina was able to continuously uphold their positive growth. The ROI and ROE of Cortina in 2014-15 has been 10.50% and 10.38% respectively. However, the dividends per share were not impressive as extraordinary items fell by 17.16%.
Social: The initiatives taken by the Singaporean Government regarding the safeguarding of the cultural and environmental considerations have allowed firms to effectively communicate with the customers under the SDFC policies (Wetlaufer, 2001). Cortina however has mostly communicated in relation to their product and service promotion.