ASOS Delivery of Goods
Social- Attitudes to work.
Many people around the world have different attitudes towards work. Some people have been raised with the attitude that it doesn't matter if they don't work. In the near future it is either going to go one of two ways for peoples attitudes towards work. On one hand, due to a new government gaining power, peoples attitudes towards work could improve. The social reputation for people claiming benefits is getting worse and many people do not want to be a part of that community due to unemployability later on in life. This benefits ASOS in the future due to being able to employ a wider range of people. Many peoples attitudes towards working could dramatically change due to it being harder to find jobs. The population in the country is rising rapidly which means a higher demand for jobs. Although employers are grateful for having a wider pool of people applying for the job it also means that there will be lots of people whom do not get employed. The lack of jobs is closely linked in with the economic environment and many people feel the reason they are unable to get a job is due to companies having to pay too much on their overheads e.g… government taxes, leaving them not enough money to employ more staff.
On the other hand many people do not want to work. Many 18-24 year olds are leaving education to no future jobs and think the easiest thing to do is go on the doll. Although many people will finish university, graduate and proceed to finding a job, there is a majority of people who choose to let the tax payers fund their daily lifestyle. Due to children being brought up in this environment they do not have ambition for themselves and also claim benefits.
This is a problem for ASOS in the short term future as many people who would be qualified to work in their warehouses are not seeking to work. The main age group ASOS are looking to employ are people in their 20’s due to being able to teach them thoroughly how the company is run without any previous work experience impending on their ability to learn a new skill. ASOS in the future could find themselves short staffed due to wages being lowered by higher overheads. This means many people would rather get the same amount of benefits and not work than work for minimum wage.
Political- The general election
There general election has many contributing factors to the success and decline of ASOS as a company in the future. This is due to new parities gaining power every four years. Different parties see differently about how the country should be run and if a party gets into power who believes that retailers should pay more taxes or charge extra rent for their business warehouse then their overheads are going to increase. By a companies overheads increasing they then have to raise the price of their products or cut wages of staff members. In the future it is expected for some prices on ASOS’ website to go up slightly be to changes in the market, however if they were to dramatically increase the products prices over time they could lose customers to competition retailers. In the future the general election could negatively impact ASOS as a retailer and they may feel the need to either open a bricks store in a busy high street such as Oxford Street or offer a wider range of services such as homeware.
The general election could also have a positive effect on ASOS as a retailer meaning that companies taxes and overheads are lowered due to a boost in the economy. By there being a boost in the economy the pound becomes stronger compared to other currencies and importing goods costs less money. This means that by ASOS having a larger profit than in previous years they are able to offer discounts and special offers without the worry of them being at a loss. This also means that employees can be granted a bonus ensuring staff stay with the company and enjoy working there.
Legal- Minimum wage.
Minimum wage could be a problem for ASOS as governments are always trying to raise it. By the government raising the minimum wage this means that the company will have higher overheads due to raising wages. . Although employees will stay with the company ASOS may be forced to make employees redundant as they do not have enough money to pay them. The minimum wage is a legal pay and every company has to abide by it. By the government raising minimum wage companies like ASOS are no longer able to pay their staff the extra money each month. By ASOS paying their staff extra each month adds to their overheads, the minimum wage is a law, therefore ASOS must ...
Manufacturing, Distribution & Delivery