TJX Companies Powerpoint-Business Environments

Global Environment of TJX Companies

TJX Companies Inc. is among the leading companies that engage in home fashion and off-price apparel worldwide. Among the Fortune 500 companies, TJX companies receive a high ranking of 85. The company had accumulated revenue of $39 billion by the end of the year 2018. This was generated from the 4,300 stores that are distributed in 9 countries, from the companies’ associates and also from the companies’ e-commerce sites (TJX, 2019). The companies mainly operate in the United States, Canada, United Kingdom, Netherlands, Austria, Ireland, and Australia among other few countries. In the United Kingdom, the companies operate T.K. Maxx, Homesense, and tkmaxx.com. This paper will focus on UK T.K Maxx, describing its domestic environment and highlighting the characteristics of the global environment that would increase the success rates of this company. The paper will also address some barriers that are present in the new global environment.

Since the beginning of the new millennium, globalization has greatly impacted the world in different aspects, including trade. Evidently enough, trade barriers that used to exist in the recent past have been brought down, hence facilitating trade. This has enabled the equal distribution of impacts that were localized in specific parts of the planet. These impacts have become significant worldwide (Stefańska & Nestorowicz, 2015). More evident is the extent to which cultures have come together, breaking off the communication barrier that used to exist (Thomas and Inkson, 2009). The impacts of globalization are felt by all countries regardless of the state of a country, whether developed or developing.

Due to the increasing shrink in our planet, there is the creation of a better global environment for companies such as T.K Maxx since it enhances trade between nations (McCormick et al. 2014). For the U.K based company, this would have a positive impact and lead to expansion to other members of the kingdom. The drop of trade barriers will enable the industry to have a reliable flow of labor, goods, and knowledge, hence ensuring flexibility. The United Kingdom is a developed region and hence, most of the factors that affect developing countries do not affect the region (Akter, Rahman, & Radicic, 2018). With the globalization, T.K Maxx managers must acknowledge that factors such as market, investors, and competitors are more available in the U.K. Some impacts such as competition might act to enhance the business or derail its growth. For this industry, there existed other industries that were dealing with similar products. New industries have also been started considering the free access to the market and better government policies that favor trade. As such, business for T.K Maxx is threatened and this calls for stern measures in ensuring that the industry remains operational in the market. The attempts that the industry would make will consequently improve the productivity of the market, thus, the industry environment will have influenced the industry positively. In cases where the business fails to adapt in the right way, the company can be affected negatively lowering its trade ability.

The presence and free movement of investors is another key environmental factor that would lead to business growth (Stefańska & Nestorowicz, 2015). In cases where more investments are made in an area, the market availability for products is raised. For instance, some of the investors will invest in retailing T.K Maxx products, hence increasing the distribution of the products. Consequently, the products will have an upper hand in the market since their brand will be popularized. For the success of the industry, the managers are required to capitalize on any opportunity that appears. They need to clearly understand the environment across the member states boundaries. Globalization has led to the spread of many brands around the globe. This will also be felt in the U.K as well as all over the world.

However, despite the many positive impacts that globalization has brought, there still exist barriers to achieving success in the new global environment, such as new government policies such as BREXIT that would impose trade barriers for traders. A state that is independent will have its own policies which might be unfavorable for other states (Akter et al. 2018). This will bring down the benefits the new global environment has achieved. To counter this, there is a need for every government to consider the consequences of every policy that they impose. The weight of the impact on the citizens should then be the determinant on whether such a policy should be passed.

Lack of progress in the implementation of globally-favorable trade policies is another barrier that faces the company (Stefańska & Nestorowicz, 2015). This barrier can limit the expansion of the company by discouraging the investors and reducing the market for the company among others. To overcome this, the company alongside others should take up the responsibility of ensuring that the government implements any set policy to improve the global market. Such policies can aim at protecting the products of the given company while also improving trade all around the globe (References for Business, 2019).

The T.K Maxx success can be improved by capitalizing on the characteristics of the global environment. The permeability and accessibility of the global environment have really enhanced trade for the company. This has, however, been faced by some barriers as explained above. With careful analysis of the barriers, effective solutions can be found to dissolve the barriers.

References

Akter, M., Rahman, M., & Radicic, D. (2018). Regulatory barriers of internationalization for the SMEs: An emerging market context. In 45th Academy of International Business (UK & Ireland Chapter) Annual Conference, 12-14 April 2018. Birmingham, UK: The University of Birmingham.

McCormick, H., Cartwright, J., Perry, P., Barnes, L., Lynch, S., & Ball, G. (2014). Fashion retailing–past, present, and future. Textile Progress, 46(3), 227-321.

References for business. (2019). Strategy in the global environment. Retrieved from https://www.referenceforbusiness.com/management/Str-Ti/Strategy-in-the-Global-Environment.html.

Stefańska, M., & Nestorowicz, R. (2015). Development of the fair-trade idea in Europe and the United States. In Fair Trade in CSR Strategy of Global Retailers (pp.35-64). Palgrave Macmillan, New York.

TJX. (2019). TJX. Retrieved from https://www.tjx.com.

Thomas, D., & Inkson, K. (2009). Cultural intelligence living and working globally (2nd ed., Rev. and updated.). San Francisco, CA: Berrett-Koehler Publishers.