Document Type:Thesis

Subject Area:Business

Document 1

The company is operated by the owners with 60% being held by the family of Dirk Rossmann. The remaining 40% of the company shares belongs to the international A. S. Watson Group that runs the company together with the Rossmann family. Its headquarters are located in Burgwedel, a town in Germany, located near Hanover. This progress resulted in the company’s development into an upper-class store named “Parfümerie-Drogerie-Discounter”, that is, a perfumery, beauty as well as health products store that offers discounts, by the early 1980s. Today, the company needs no other additional description on its name, with simply Rossmann and an additional “Mein Drogeriemarkt”, meaning “My Health and Beauty Store”, one can tell the nature of the company as its name has made it popular for its good products.

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However, the additional “Mein Drogeriemarkt" is only used for the purposes of advertising. Today, Rossmann owns over 3000 retail stores in Europe and has employed more than 43,700 staff members. It operates in 6 major European countries, namely, Germany, Poland, Hungary, Czech Republic, Albania, and Turkey. This is done by organizing for success together with executing the ‘Lean Retail’ model (Rossmann Company, 2018). In addition, Rossmann Rewards have become the most attractive self-service store loyalty program in Europe through its unique money-off proposition and currently has more than 9 million members. This gives the members a chance to earn cash, get money off their shopping as well as exclusive access to a broad range of promotions and offers. Moreover, they talk to their customers often as well as listen to their comments and feedback.

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This helps them know what works well and where they need to work harder to improve customer experience (Rossmann Company, 2018). Sourced from Rossmann Company (2015) Sourced from Rossmann Company (2015) Sourced from Rossmann Company (2015) ANALYSIS OF BUSINESS SCENARIO External Analysis PESTEL Political Factors In any international business, the political state of the countries it operates in play an important role as they have to counter the political pressures laws by each of the countries (Wall & Minocha, 2015). There are policies that have been set by each country, that affect Rossmann directly in terms of business and income. They include taxes imposed and political stability. Political stability indicates the state of the economy of a particular country as well as whether there are a good enough market and the state of the supply chain (Hamilton & Webster, 2015).

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To ensure a constant supply of their products, political stability is an essential feature, particularly with the establishment of one or more stores in Sweden. This has made Rossmann put its focus on brand localization. Social responsibility is a principle governing conduct within Rossmann both internally and externally. First, Rossmann trains its staff adequately, through seminars and workshops, to ensure they are highly productive. In addition, the company utilizes individual promotion programs to ensure the professional development of its staff at a personal level. Vocational training is also available. This has resulted in the company receiving an award from the German Energy Agency (DENA). In addition, the company has ensured that its cars comply with the carbon dioxide emissions set by the German Environmental Association (Brooks, Weatherston & Wilkinson, 2011).

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Legal factors Legal issues are another issue that all organizations marketing their products internationally have to deal with. Each country has its own set laws that tend to differ from others. This is an aspect the attends to greatly impact on the products sold by Rossmann to countries all over the world. Since Rossmann brands are reliable, customers would rather buy from Rossmann that's popular from producing high-quality brands. Moreover, Rossmann ensures that there is an excellent customer service thus reducing the chances of bargaining by the customers. However, the products are sold at a discounted price, an aspect that lures its customers to keep purchasing. The major factors that influence the bargaining power of buyers include the brand image and brand equity (Michaux, Cadiat & Probert, 2015) of which Rossmann is strong in both.

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Bargaining power of suppliers In addition, the bargaining power of the suppliers in Rossmann is high as this industry is filled with suppliers with a great diversity and a high number of brands. In Sweden, Rossmann has to fight against popular companies such as Too Faced, Marc Jacobs beauty and Saphora. All these companies produce a variety of products that are unique to the shops, an aspect that tends to threaten the establishment of Rossmann in Sweden. Thus, Prices, portability, decline, productivity as well as innovation have become an important aspect that Rossmann has to work on to remain active against its competitors in Sweden (Harrison, 2014). CONCLUSION Rossmann Group of companies is one of the largest, actually the second largest, company in Germany dealing with health and beauty products as well as food retailing.

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