...iBM 1. 2. Analyze IBM strategies, to remix their businesses in order to move to the emerging higher-value spaces, in Macro and Micro environment level 3. IBM strategy PESTEL analysis in Macro level Five forces analysis in Micro level Recommendation Conclusion SOWT analysis Complexity analysis 4. o IBM understood Value was shifting in the IT industry, driven by the rising tide of global integration, a new computing paradigm and new client needs. o Economies of developing nations were growing rapidly, driven by historic investments in fundamental business infrastructure. Enterprises were looking to tap skills and expertise available all over the world and to integrate their operations globally. o Change in computing architecture was rippling across the data center and the network, along with a proliferation of technology infused into all aspects of work and life. Companies were seeking to integrate advanced technology with their business processes and operations, not only to reduce costs, but to enable innovation and growth. o IBM remixed their businesses in order to move to the emerging higher- value spaces by focusing on software and IT industry. IBM Strategies 5. IBM Strategies Hardware And Services Software IBM sold the personal computing department To Lenovo 6. PESTEL Analysis for Macro environment factors Social Political Technological Environmental Economic Legislative 7. Iraq War in 2003, affected world economy, and IBM stock fell down. Technology affects directly...
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...critical decision and needs to be made with considerable care and deliberation. Initial market entry decisions have typically focused on country evaluations based on macro-economic data. While appropriate in providing an initial screening of countries, other factors, notably contextual factors, can provide important insights in assessing international market opportunities. The purpose of this paper is to examine the impact of context at four distinct levels. Design/methodology/approach – The literature on the influence of context on consumption and purchase behavior is reviewed to provide a framework to understand contextual factors as a means to refine entry strategy and develop effective segmentation strategies. Findings – A wide range of contextual factors exert influence on consumption choices and contribute to within-country heterogeneity. These are typically examined at the macro-level, but also need to be examined at the meso-level, micro-level and situational level to fully assess market opportunities and establish viable market segments. Practical implications – Examination of contextual factors provides a richer and deeper understanding of which international markets to enter and which segments to target. Within-country cultural diversity, dramatic economic and regional disparities and marked differences in the infrastructure need to be assessed. In particular, examination of contextual factors helps to shed light on heterogeneity within countries not only in customer behavior...
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...MACRO FACTORS AFFECTING BUSINESS ENVIRONMENT SUBMITTED BY: AAYUSH VERMA INTRODUCTION A business firm is an open system. It gets resources from the environment and supplies its goods and services to the environment. There are different levels of environmental forces. Some are close and internal forces whereas others are external forces. External forces may be related to national level, regional level or international level. These environmental forces provide opportunities or threats to the business community. Every business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. The term business ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business may be defined as “the organised effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”. Business organizations cannot change the external environment but they just react. They change their internal business components...
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...needs and desires. Customer value is the value a specific exchange has for the customer as opposed to for the company (White, 2012). Marketing function determines customer value because it refers to the value of an item the customer receives. A marketer’s job is to develop an offering and to price it in such a way that its value attracts customers, yet it still makes a profit. This paper will introduce and market the product iTunes using the STP approach, discuss major environmental facts and trends in China, and contain a marketing plan for iTunes using the four p’s of marketing. A product that is sold in the United States and has sales opportunities in China is the intangible service iTunes from Apple. ITunes is a store in the form of an app that can be downloaded to ay electronic device where you can purchase music, games, and apps. This product can be purchased instantly over the internet with a debit card or iTunes gift card. This product is inexpensive and reliable with instant service. ITunes is a whole digital hub concept and people are buying into it. The target market for iTunes in the United States are individuals from eighteen years of age to forty-nine years...
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...MACRO FACTORS AFFECTING BUSINESS ENVIRONMENT SUBMITTED BY: AAYUSH VERMA INTRODUCTION A business firm is an open system. It gets resources from the environment and supplies its goods and services to the environment. There are different levels of environmental forces. Some are close and internal forces whereas others are external forces. External forces may be related to national level, regional level or international level. These environmental forces provide opportunities or threats to the business community. Every business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. The term business ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business may be defined as “the organised effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”. Business organizations cannot change the external environment but they just react. They change their internal business components...
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...whether the Uppsala model functioned in Samsung Electronics Corp. (SEC) case. The purpose of this study was to upgrade the Uppsala model by using a representative case of SEC. This thesis found that there are two dimensions derived from the Uppsala model. The first dimension is the sequential nature of the internationalization process in terms of psychic distance (from the market with close psychic distance to the market with remote psychic distance). The second dimension is a “market commitment” dimension, which means the form of market operation established from low-level commitment to high-level commitment. Two hypotheses derived from the two dimensions of the Uppsala model will be applied in SEC case. The first hypothesis is that the shorter the psychic distance between SEC’s home environment and target markets, the earlier will SEC establish foreign activities in those markets and vice versa. This hypothesis will be tested on a the macro-level with regards to the geographical distribution of Korean1 outward FDI and will be tested again during the internationalization process of SEC in two target markets-China and the US, to estimate how psychic distance functioned in SEC internationalization process. The second hypothesis will be tested by SEC’s actual operations in Europe. The conclusion will summarize the whole study, discuss research questions and provide some suggestions for future studies on the internationalization process of firms. Key Words: the Uppsala model, Samsung...
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...Approaches to Management & Environments Organizational management can have many approaches. Keeping employees, suppliers and consumers happy can be a complex process. It has been determined that contemporary approaches to management directly relate to an open system and the environments of an organization. Not all contemporary approaches to management relate to every organizational environment directly, but can have an overall impact. Sociotechnical systems theory is a contemporary approach to management that says that the right combination of workers along with their knowledge, training and tools leads to organizational effectiveness in satisfying customers. Quantitative management is another contemporary approach that prioritizes mathematical or statistical analysis as basis for decision making. This approach helps a manager make a decision by developing formal mathematical models including linear programming, queuing theory, simulation, forecasting, inventory modeling, network modeling, and breakeven analysis to resolve a problem (Bateman & Snell, 2013). The organizational behavior contemporary approach studies and identifies management activities that promote employee effectiveness by examining the dynamic nature of individual and group behaviors and interactions along with organizational processes. Systems theory shows that the organization’s performance depends on how effective it is providing goods or services using inputs from the external environment. Systems theory also...
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...72169616: strategic management: internal and external factors that characterize a strategic decision Introduction: Strategic Management Process is the process which involves the process of planning, implementing and taking corrective action against the various business processes of the organization which include the strategic implications on corporate level, divisional level, strategic business unit (SBU) level and marketing level. The foremost requirement while understanding and developing this process is to carry out environmental scanning to study the external and internal factors that affect the decision in the development of the strategies and the tactics. Environmental scanning implies the process of examining the open system (external environment) and closed system (internal environment), monitoring the results and distributing it to the key managers at the right time and the right place with the required information. For a sound strategic decision to be formalized by the marketers it is very important for the firms to scrutinize their business processes by analyzing the internal and the external environment that it constitutes. Purpose of Marketing Environment Analysis: • Understanding the opportunities and threats is possible by environmental study • Strategic responses to the environment is spotted by the analysis • Examining the environmental factors provide insights into the future perspective of the strategies harnessed. • The favorable...
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...learners’ ability to evaluate the elements of the macro environment and its relation to an organisation. Select an organisation which you are familiar with. Explain the elements of its macro environment and discuss how these element(s) affect your selected organisation. Recommend improvements that can be made by the organisation in managing the macro environment effectively. Criteria Description on the selected organisation Description on the general macro environment elements Identification and discussion on element(s) of macro environment that affects the selected organisation Recommendations to improve management of the macro environment in the selected organization 1.0 Introduction A macro environment comprises the external factors that can significantly impact its performance and ability to compete in its marketplace. These factors are often out of the control or management ability of a company. Factors typically include economic, demographic, political, and technological forces in business. Business owners and managers often spend copious amount of time and effort to assess the overall economic environment in order to determine the number and strength of each factor. Strategies and performance reviews can help owners and managers use the macro environment factors to create a competitive advantage for their respective companies. For companies with a global foot-print, their exposure to macro environment elements is magnified. The Coca-Cola Company...
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...essay covers the economic, legal and social environment factors impacting Samsung and Apple. Tough economic conditions are forcing them to take their fight to the emerging markets. Social factors are forcing them to operate locally while being global companies while legal factors are making them to fight over patent infringement etc. The organizational culture is impacting their performance so they are trying to make it positive by involving employees in the decision making and making them more autonomous. The leadership style is pretty aggressive and they are taking higher risk to gain higher returns. Technological advancements means the rivals are also customers and vendors of each other as well. I have selected Samsung as it is the company for which I want to work after graduation. Samsung is famous for its electronic products specially smartphones and smart TVs. My second selection as per requirement is Apple Inc. Samsung’s biggest rival. Economic Environment Economic environment is particularly important for both Samsung and Apple because both are working in numerous developing and developed economies and are expending upon their foot prints globally. Economic factors are particularly worrying for both the companies as the economic crisis has negatively impacted the purchasing power of the consumers in the developed market hence forced them to look to the emerging markets for profitable ventures. Their macro environment, filled with volatility and uncertainty has...
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...Integrated Case study AN ANALYSIS OF THE CASE: BEIERSDORF AG: EXPANDING NIVEA’S GLOBAL REACH Sasipim Viriyajaroen STUDENT ID: C0346RCRC1013 Submitted in fulfilment of the requirements of the Masters’ degree to the London School of Commerce, for the degree of Master in Business Administration (MBA) Supervisor: Dr K V Shenai September 2014 ICS: BEIERSDORF AG: EXPANDING NIVEA’S GLOBAL REACH Contents page Acknowledgements Executive Summary Chapter 1: Introduction 1 Chapter 2: Case brief 4 Chapter 3: Problem statement and Analysis 9 3.1 Statement of the problems in the case 3.2 Relevant literature review 3.3 Proposed plan of analysis 3.4 Sources of data 3.5 Ethical issues Chapter 4: Analysis and Findings 19 4.1 An assessment of the current position 4.2 Alternative future scenarios 4.3 Resource Constraint Evaluation Chapter 5: Proposed solution to Problems 32 5.1 Integrated discussion of the analysis 5.2 Recommendations and proposed plan of action 5.3 Critical assumptions to the analysis 5.4 Implications for stakeholders 5.5 Limitations of the study, scope for further research Chapter 6: Application to another case 38 6.1 Description of the comparator company’s situation 6.2 Testing the recommendations on the comparator company Appendices References Acknowledgements The making of dissertation period is one of the most...
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...I. The Brazilian Macro-Environment Investment Climate Analysis Brazil is quite interesting place for investment and many companies are entering this developing market. Its high GDP growth, large economy, developed infrastructure, liberalisation of public sector and many Foreign Direct Investments have turned this struggling country into developing nation that holds 2nd place (China is 1st) in amount of foreign capital invested into the economy. In last 5 years, Brazilian government has been quite stable and it seems that Brazil has a sound strategy when it comes to taking its economy into top performing ones. Government is introducing new, more liberal competition laws and it is introducing new forms of investments, such as PPP, or Private Public Property, where both the investor and government share the risks by holding equal stakes in the investments. But, let us not be blinded by the Brazilian marketing skills and their portraying of real investment climate. There is for sure a lot of space for improvement. We will perform a few analyses, which will give us precise insights into the environmental conditions for investing in Brazil, and through analysing this country; we shall decide what type of investment is the most suitable for Red & Green. PESTL Analysis Investment climate is the economical, institutional, policy, and regulatory environment in which firms operate. A PESTL analysis is an analysis of the external macro-environment that affects all firms....
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... | | | | | | | |Candidate No: 13184461 | | | |Center Name: Management Development Centre (MDC) | | | | | |Subject: Emerging Themes | | | | | |Word Count for Discussion Paper: | | | |Task One: 555 | |Task Two: 2,740 | |Task Three: 453 | | ...
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...MACRO ENVIRONMENT The Coca Cola Company and other organizations have their own weaknesses and strengths that can both affect the future performance of their respective business. Analyzing the future constraints is an advantage for the companies since they can identify the possible factors that tend to leave an impact on their business. PESTLE analysis is a popular method that focuses in the external factors of the business and the environment where it operates. PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental. All of them examine the changes in the marketplace. Political Analysis Political analysis examines the current and potential influences from political pressures. The non-alcoholic beverages falls in the category under the FDA and the government plays a role within the operation of manufacturing these products. In terms of regulations, the government has the power to set potential fines for the companies that did not meet their standard law requirement. The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws and foreign jurisdictions might affect the book of the company as well as their entry in foreign country. Other than that, the changes in the nature of business as non-alcoholic beverages can gain competitive product and pricing pressures and the ability to improve or maintain the share in sales in global market as a result of action by competitors. The political...
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...1. In this course we have discussed the factors that have lead to the growth of the global economy and therefore the rise in global marketing. Discuss drivers and how they have assisted the development of the global wine market. How do the macro environments (political, legal/regulatory, cultural, and economic) influence the ability of the wine industry to grow within a given country? . There have been many factors that have led to the growth in the global economy. Some drivers that have been discussed in this course so far are: peace following WWII, the global support of GATT & the WTO, along with major improvements in information technologies and communications. But as the world revolutionized so did world trade and the global wine industry. Innovations where born, and communication between countries became easier which streamlined the distribution process a global market for the wine industry began. The demand for wine also increased worldwide as World War II came to a close. We learned in Chapter 1 that global commerce thrives during times of peace. An increase in the demand for wine during the postwar era coupled with new innovations that enabled wine to travel further distance without going bad, allowed “New World” producers to step up and compete with “Old World” traditional wine makers. This in turn caused new regulations and “standards” (of which we learned about in chapter 2) in order to protect their own domestic wine industry. ...
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