The impact of government instability on fiscal policy, pricing, and sales performance in the luxury furniture industry: evidence from Shanta Lifestyle Limited (SLL)

Abstract

The study is based on my observations, personal experiences, and experiences during my internship at Shanta Lifestyle Limited. It provides an overview of the Luxury Furniture Industry and how a volatile government has influenced the total sales, and the analysis of the risk management strategies necessary to sustain growth. In chapter 1, I have described the experience of my internship with Shanta Lifestyle Limited (SLL) and mentioned my role, contribution, and the challenges that I encountered in the company. My learning experience was great due to my supervisor and other colleagues. However, SLL being a Private Limited Company, confidential information and Financial Statements were not easily available. In chapter 2, I have addressed how the current practices in terms of management, marketing, financial and accounting, operations management, and information practices are helping grow the business. Finally, SWOT analysis and 5 forces by Porter have been used to conduct a competitive analysis. Subsequently, this part of the report reflects the strengths and opportunities of SLL, which turned it into a unicorn in a span of time. Finally, I offered some recommendations based on my observation and view. In chapter 3, I discussed the impact of government instability in Bangladesh on fiscal volatility that is raising the import costs and pressure on the pricing of Shanta Lifestyle Limited. Increasing compliance costs and obligations had to be passed on, increasing the price, which weakened consumer confidence and sales performance. The results indicate that import-dependent luxury retail requires proactive pricing, predictability of fiscal risks, and policy predictability. As such, this research has helped me to realize that the Luxury Furniture Industry is an expanding industry, and government stability and policies are crucial factors