Q & A Case Study: West Marine

Improved Essays
PESTEL
1. Political – “significant delays in the delivery of cargo due to security considerations; and economic and political conditions or terrorist acts, or other problems in countries from or through which merchandise is imported and exported.” (Page 14)

West marine is sometimes faced with dilemmas that delays merchandise that is imported and exported due to occurrences beyond west marine’s control. This leads to a series of issues that can lose revenue for the company. The countries in which west marine receives merchandise have to abide by strict laws and policies within their country which could affect the revenue streams and also operations within the company.

2. Economic – “Economic conditions in the U.S. and key international markets or other conditions leading to a decline in consumer discretionary spending may materially adversely impact our operating results.” (Page 6)

The products sold by west marine are considered to consumers as a discretionary product rather than a need that needs to be filled, making it tough to sell when there are drastic changes in the U.S. and global markets including Europe which adversely affect consumer spending habits and company operations for the future. Changes in the market including employment levels, interest rates, tax rates, debt levels and fuel and energy costs tend to change
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In the event that the laws are broken there could be civil penalties that can possibly affect the operations of the business including revocation of licenses or recoupment of prior payments made based off of the finding in the audit report. Third party service supplies are also able to review and/or audit the use of west marines licensed products. Any Issues found could possibly require payments of fees or claims for payment. These issues can reflect negatively on the financial

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