Project

 HMV

HMV is a public limited company, which operates in the United Kingdom, Republic of Ireland, Canada, Hong Kong and Singapore. HMV is a entertainment retailer which is the biggest of it’s kind in the United Kingdom and Canada. They sell products such as Books, Videogames, DVD’s, Music and even T-Shirts.

The first HMV store was opened by the Gramophone Company; it was opened in 1921 in London.

1) HMV, they create wealth by selling products, but the products they sell are not made by them. Most of what they sell are discs e.g., CD’s, DVD’s and Videogames. CD’s are sold by HMV but they don’t make them, even before the record label release the CD, they have to make the discs. HMV hire individual’s to work in there stores, these people sell the products to the customers. Since HMV have numerous stores throughout the United Kingdom, Canada, Hong Kong and even Singapore. HMV had approximately 11,200 employees in 2006. This number will possibly decreased in 2009 because of the Global Economy going down. HMV as a whole is an entertainment store, like I said earlier; they sell CD’s, DVD’s and videogames. They even sell certain T-Shirts. Magazines and sometimes books.

2) HMV is set-up as a Public Limited Company, this means that they offer their shares to the public. HMV is one of many big companies that have become a Public Limited Company. The advantages to being a Public Limited Company compared to Private Limited Companies are that the shareholders don’t have a lot of liability, another reason they could have chosen to be a Public Limited Company is greater borrowing power; you could borrow a loan from the bank without much trouble. HMV is a company that is in the Private Sector. This means they are being run in the hope of making a good profit. It is not controlled by the government, thus meaning, they look for profit, access to financial resources and access to improved varieties. However there are disadvantages to being in the Private Sector, they have limited flexibility to certain markets.

3) HMV’s business objectives are to become the biggest and best entertainment provider in Europe and Canada. In essence, they are. But they still seem to want to grow and become even bigger; possibly moving into America. Another one is: They want to grow new revenue from new channels, meaning they want to grow and adapt to the changing world.

4) The first HMV was store was opened by a man called Sir Edward Elgar. He opened the store in 1921 in London. From then the store has grown. The Gramophone Company that owned the store, merged with Columbia Gramophone Company to form Electric and Musical Industries Ltd (EMI). From there, HMV began to expand the brand name and the stores. In 1996, they began opening more stores around London. Then as the 1970’s came they continued to expand and became the countries best Entertainment store, while they did have competition from companies such as Virgin Megastore. In the 1990’s there was over 300 stores internationally.

5) The stakeholders in HMV consist of internal and external holders. The internal involve the management team, the staff and the owner. The external stakeholders involve banks, suppliers and most importantly the customers. Each one has a lot of influence, the employees and the managers may ask for a pay rise or ask for improvements around the work place. Meanwhile the suppliers would like to have more orders coming into them, the customers would want good customer service.

6) HMV can have many ways of raising money. One of these is investors, they give the company money to get a share of the money produced. Another way is to get a bank loan, although the company has to pay it back they will probably make enough money off it.

7) PESTEC Political Factors: Due to the effects of the recession, that is probably the most dangerous factor of Political to HMV.

Economic Factors: With people going through the credit crunch then not many people will want to spend money buying games, DVDs or CD’s. This would affect HMV in a big way as that is what the sell. This is similar to the Political Factor.

Social Factors: Some social factors may be people becoming more wearer of video games having violent conduct in them the same could be said for DVD’s. Parent’s are becoming more protective over what they’re kids do and losing the money from them would cause a problem for HMV.

Technological Factors: If HMV can’t advertise certain products on the internet then it will be hard for them to sell certain products. All companies must keep up with the fast advancing technology.

Environmental Factors: Companies – when building – must take in the factors of the environments including weather.    