Diploma in Commerce Business Environment Introduction

Assignment 2

DipMM2

There are a variety of factors that will affect how a business will operate, and decision implement that will change a business. Using SWOT analysis and Porter’s forces we will be able to better dealt with the problem that a business is facing. SWOT stands for strength, weakness, opportunities and threats. Understanding these 4 points in SWOT analysis will enable us the knowledge of business environment we are dealing with, thus allow a better strategy to form. Porter’s five forces include newcomers that could draw away customers, bargaining power of suppliers, bargaining power of buyers, threat of substitute product and lastly the constant rivalry among competitors. Understanding these five forces will help to determine market attractiveness providing us with information of when we can enter or exit certain industry Company Profile Spectacle hut has more than 40 stores throughout the whole Singapore Island. It is consider being the largest local operating optical retail chain in Singapore. Founders Gary Khoo and wife Sara Hay started with the shop in Clementi during 1997. Although working with only theirs saving and met with lots of challenges during the company infancy period, during their last fiscal of 2011 they have cash in about $40 million in revenue. The company main brand, Spectacle Hut, is targeted towards the middle to upper class shopper, carrying high-end brands such as Cartier, Channel and Gucci. They have also a subsidiary brand name, Blue Eyes, aimed towards the middle to low-end consumers. They have been actively branching out over the past five years, including opening branches overseas like Beijing and Kuala Lumpur. During the year 2008, Spectacle hut was give a grant of $125000 under Spring’s Technology Innovation Programmed, to improve on its existing point of