Economic: When viewed from economical perspective, the nation has a higher rate of economic development across the world. The China is among the leading economies and the major benefit of working with this nation is the fact that it has cheaper labour but higher demand for international products.
Social: According to Su et al, (2001), China is a country with high context wherein individuals are of the preference to receive messages that are implied. For establishment of business within China, strong relationships of private nature with distinct shareholders leads towards success. The social preference of people or customers is to buy good quality and imported products.
Technological: The retail industry of China is flourishing and it has its market development over technological standard and apprehension to be taken care of.
Environmental and legal: There are several strict environmental regulations at play here. Various environmental friendly programs have been proposed by the government such as Natural environment protection program and also waste management programs to ensure that there is no negative influence of businesses over the environment.
Currently the organization only focuses on cost leadership in order to derive organic growth but this has curbed flexibility of the firm. Therefore, the change is required to address this issue. The cause succinctly lies in the inappropriate strategic use of cost leadership especially when it has not offered much efficiency or profitability (Lynch, 2012). The context of the change is strategic change. There are several challenges which surround this initiative and the key out of them is change resistance.
Wolseley employees and the top management will require assessing this change as a process and work in collaboration with their sponsors for developing recommendations and appraisals that can help in identifying and resolving complicated issues between organizations (Mellahi et al 2015).