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1. IDENTIFYING A KEY ISSUE/PROBLEM: Please identify a significant issue/problem TWG is currently facing connected to at least TWO of the four THEMES discussed. Two related themes Please select two themes here by clicking the checkbox: ☐ Theme 1: Society, Natural Environment, Sustainability ☒ Theme 2: Globalisation ☒ Theme 3: Industry, Markets, Competition ☐ Theme 4: Organisations, Strategy, Competitive Advantage Key problem/issue The threats that TWG experiences include competitive threats from international retail powerhouses. The company also has radical tasks of achieving sustainable profits and fulfilling sustainability goals in a changing retail environment. Word count: 287 YOUR ANSWER BELOW: In the recent past, TWG has been experiencing several competitive threats from global majors such as Costco and IKEA in New Zealand. Many of these competitors also have immense economic buying power, well-developed global purchasing networks, and a significant web presence, making it troublesome for TWG to either beat them on price or offer more differentiated merchandise to consumers (Qureshi, 2023). New entrants in the market through globalization are thus armed to provide lower prices and broader varieties. This is more so with TWG, which has invested in its product line as a low-cost operator over the years but has been fighting to turn a profitable operation, as evidenced in FY2024, where the company recorded a NZ$ 24 million loss. At the same time, TWG faces pressures to address sustainable development initiatives in its functioning, which is one of the primary reasons behind the goal to 'do good.' TWG has set sustainability goals where it has vowed to bring down the Scope 1 and 2 emissions by 42% by 30 and eliminate waste by 2040 (Leonard, 2020). However, the most significant challenge is aligning these sustainability programs with the need for competitiveness. Adding to this is that TWG realized more than 60% of its products are from overseas, specifically focusing on China. Thus, global sourcing issues, such as high expenses and transportation complications, affect the company. This may be important for the subject company because TWG's capability to challenge global competitors while upholding its ethical and ecosystem responsibilities will define its prospect. TWG stood in danger of losing its current position in this market and its reputation with customers, a vital factor with today's populace that increasingly considers the sustainability policies of any firm it engages with. 2. APPLYING THE LEARNING: Please ensure that you apply the theory, concepts, and frameworks directly related to the content in class or that they have been covered in the prescribed textbook readings. Applied concepts/theory Porter’s Five Forces CSR theory, also known as the Stakeholder Theory SWOT Analysis Word count: 436 YOUR ANSWER BELOW: Porter's Five Forces framework would provide crucial information on the competitive forces at play in the case of TWG. A new entrant threat has greatly been influenced by the entrance of Costco and IKEA (IKEA, 2023a). These firms are not only some of the largest organizations in the world that operate robust supply chains but also brand power and relatively efficient cost strategies. TWG, in contrast, has more stretched margins, and these players pose a worrisome threat to its ability to defend market share as customers look for cheaper and differentiated products. Another threat the industry faces is the bargaining power of the buyers. Due to the current situation in New Zealand, which has a high inflation rate, consumers are susceptible to new product prices. TWG faces loyalty threats from global compe...