Question

Answer the flowing based on the campany, Shoe Carnival, Inc.

a. What are the Political, Economic, and Social factors that are affecting the company’s success?

Answer 1

Shoe Carnival Inc. is one of the America's largest retailers of family footwear, offering varied assortment of moderately prices footwear for men, women and children.

*The Political factors that affect Shoe Carnival, Inc. are:

Political factors play an important role in determining the long term profitability in a certain market or country. Shoe Carnival, Inc. is operating in various countries and is exposed to different political environment and systems. To achieve success in various markets, the company needs to consider political factors which affects it. Such factors are:

- Political stability and significance of footwear stores in the country's economy

- Corruption level in the regulation of the sector

- Interference of government and bureaucracy in footwear industry

- Intellectual property rights and protection

- Trade and tariff regulations related to the sector

- Regulations of work week in footwear stores

- Industrial safety regulations

- Pricing mechanism for the sector

- Taxation policy and incentives

*The Economic factors that affect Shoe Carnival, Inc. are:

In any economy, macro environment factors and micro environment factors affect the company. Macro environment includes factors such as foreign exchange rate, inflation rate, aggregate demand and investment, savings rate and so on. Micro environment includes factors such as competition norms, consumer spending and so. Shoe Carnival, Inc. should consider following economic factors:

- The type of economy of the country in which it operates and how stable the economy is.

- The exchange rates and the stability of currency of the host country.

- Financial market efficiency

- Quality of infrastructure in footwear stores industry

- Level of skilled workforce in the industry

- Economic growth rate

- Rate of unemployment

- Inflation rate

- Rate of interests

- Cost of labor and productivity in economy

- Stage of business cycle

- Level of education in the economy

* The Social factors that affect Shoe Carnival, Inc. are:

The culture of society and way of carrying out things affect the culture of the organization. The beliefs and attitudes of the people play an important role in how marketers of the company will understand the minds of consumers and they will design the marketing strategy for its footwear. The various social factors Shoe Carnival, Inc. should consider are:

- The level of skills and demographics of the population

- Power structure and hierarchy in the society

- Level and standard of education in the footwear industry

- The culture of the society such as gender roles, etc.

- Spirit of entrepreneurship and nature of society

- Attitudes of people on issues such as health, environmental consciousness and so.