HMV Outcast

Hello and welcome to this weeks GSM podcast, I’m your host Syed and this week we will be discussing the HMV group and addressing the current issues that the organization may be encountering which include, the current performance of the organization, the reasons behind the current performance, and two recommendations as to what can be done about these issues.

Now, the organization had operating profits of £15.2 million in 2015 and a drop in profit for 2016 to £11.7million. HMV Group had a turnover of £366m 2015 which was an improvement from the previous turnover of £325 million. The company is neither performing very good or bad looking at its financial records. HMV’s performance in the recent years can be considered as average; it does not

The impact on HMV will mean more taxes when conducting business to any of the other European neighboring countries. In Britain taxes have been stable and the government has not increased taxes in the entertainment industry in the recent years which is great in HMVs case. The economic conditions in the United Kingdom are also good when compared to other European countries. The country is among the top five in the world regarding GDP and second in Europe. It has a free market, and the economy is diversified, HMV has benefited from the good economic conditions in the UK. The social life in the UK has been changing a lot in the recent years. There has been a rise in living standards, which is a good thing for HMV since more people want to spend money on entertainment with a rise in living standards. There are other social factors that are not good for business such social unrest over immigration, and they have impacted businesses negatively across the UK. The United Kingdom, can be categorized as a technologically advanced country. Technology has come with its advantages and disadvantages for HMV. Advantages include the fact that it can conduct its operations more effectively and efficiently using the latest technology. The disadvantage includes the fact that people are moving on from the physical entertainment market because of new technologies and onto digital fronts, which has directly impacted HMV performance financially. The legal framework under which HMV operates has not witnessed a lot of changes in the recent years. The consumer laws and safety standards are some of the regulations HMV has to comply with, and in the past, the company has complied with them sufficiently. Environmentally, the general United Kingdom environment is good for doing business. HMV have enjoyed a good atmosphere to carry out its