...Discuss ‘How Tony could have avoided the mistake he made?’ International business is an attractive opportunity for companies in the world. It provides more potential profitable bargains for companies that have enough competitiveness. A company can gain extra income due to the development of international supply chain and demands from foreign market. It can receive lower-price components from international suppliers, then can assemble and sell final products to targeted foreign market. The whole operational procedure creates more residual value in international trade and avoids the cruel competition in domestic market. However, there are some threats which impact participators involved in international business. The threats are possibly from adverse external environment or wrong internal decisions or the integration of those. Some of threats such as political, legal and financial issues are uncertainties which are high dangers that affect a company seriously. A company should have valid preparation for facing complex external environment. Decision maker should scheme a flexible plan to handle uncertainties in business running. Nevertheless, some companies and managers might address threats unsuccessfully due to mistaken strategies. The case of Tony is a typical failed example for facing problems. The article will analyse mistakes made by Tony and provide solutions for Tony’s company. Tony’s company is a medium monitoring equipment maker in the UK which has no exporting experience...
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...important in choosing the best option. The risk considerations include evaluation of each nation’s political, economic and legal systems along with the cultural practices, education and skill levels and each countries stage of economic development. The political systems of a country shapes both the economic and legal systems (Hill, 45). These systems are interconnected and play a vital role in making a decision of which country to make an investment in. In evaluating the risks of making the investment in Russia, the most widely discussed risk that is found is the corruption in the country; this remains a major barrier success for businesses in the nation. There is a complex business environment in Russia along with known issues involving bribery. The corruption in the nation leads to a number of problems including non-transparent and inconsistent application of laws and regulations with the weak enforcement of laws and court decisions (Business Anti-Corruption Portal). This isn’t the only area where corruption is a problem in Russia, there is corruption in the area of licensing and permits with multiple inspections and red tape. Intentional and lengthy delays in the procedures for starting a business, getting required permits and licensing are additional risks along with the corruption. It does seem as though the worst corruption lies within the public procurement sector. Political risks in Russia are still very high, although there tends to be a trend of changes within the government...
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...The Macro Environment factors are: 1) Demographic Environment 2) Economic Structural Environment 3) Technological Environment 4) Political Environment MACRO-ENVIRONMENTAL FACTORS A business and its forces in its micro environment operate in larger macro environment of forces that shape opportunities and pose threats to the business. It refers the major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. The important environmental factors are; (1) Economic Environment (2) Political and Governmental Environment (3) Socio-cultural Environment (4) Natural Environment (5) Demographic Environment (6) Technological Environment (7) International Environment. 1. Economic Environment: - Economic environment of business has reference to the board characteristics of the economic system in which the business operates. The business sector has economic relation with the government, capital market; household sector and global sector. These sectors together influence the trends and structure of the economy. The form and functioning of the economy vary widely. The importance external factors that affect the economic environment of a business are; (i) Economic Conditions: - The general Economic conditions prevailing in the country viz. national income, per capita...
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...Corporation is an American multinational Oil and gas corporation. It is one of the largest publically traded companies by market capitalization in the world with its operations spanning several continents. The Company was formed on November 30, 1999 by the merger of Exxon and Mobile (ExxonMobil, 2011). Exxon Mobil explores, produces and distributes natural gas and crude oil and also manufactures and distributes petroleum products. It also produces and sells petrochemicals such as polyethylene, aromatics, olefins, polypropylene plastics and other products. It has interests in thirty seven refineries world wide. It also markets its products through more than thirty two thousand retail stations worldwide (ExxonMobil, 2011). Types of market and legal systems that exist in countries that Exxon Mobil operates: Exxon Mobil has operations spanning several countries in the United States, Europe, Australia/Oceania, Asia, Africa, and Canada/South America. Market systems that exist in these countries range according to various policies that regulate the market place operations. In countries such as the US, Australia, Canada, countries in South America, Western Europe and some parts of Africa and Asia, the kind of market systems that exist are basically mixed market economy systems. In these systems, a bigger part of the market is controlled by the prices, demand and supply of commodities with few government regulations. In other regions such as major parts of Asia, some parts of Europe (Eastern)...
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...Situation analysis and strategic recommendations of BP After oil spill disaster in USA Table of content: Introduction 3 Executive Summary 3 Approaches 3 Background of BP 3 BP in USA 3 PESTEL analysis of BP in USA 4 Political Environment 4 Economic Environment 5 Socio-cultural Environment 6 Technological Environment 7 Legal Environment 7 Environmental Analysis 8 Summary 8 SWOT Analysis of BP 8 Strengths 9 Weaknesses 9 Opportunities 10 Threats 11 Summary 11 Strategic Recommendations 11 Porter’s Generic Competitive Strategy 11 Ansoff Model 12 Conclusion: 13 References & Bibliography: 15 Appendix: 17 Introduction: As the global business environment is turbulent and dynamic every business organisation should adopt their strategy with the changing business conditions and conduct external and internal analysis on regular basis to cope up with the changing environment. This paper will analyse the overall situation of BP in USA after the Gulf of Mexico oil disaster. The oil spill creates a new condition for their operation in USA and requires considerable and serious change in the strategic decision making and positioning of the company. Executive Summary: This paper will start with a brief background of BP. A PESTEL analysis...
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...technological advances and changes in political and legal environment. changes in Information technology. This has lead to a paradigm shift in the of roles professional personnel. The great challenge of HRM is to attract, retain and nurture talented employees. This paper also analysis how to overcome with these challenges. These challenges can overcome through cross cultural training, technological and informational training of HR people and motivation of employees through various techniques Objective of paper To study the details of emerging challenges To find out the various methods and techniques through which HR can overcome the challenges of present business scenario Methodology – The analysis of this paper is totally depend upon secondary data like journal, books and various website from internet Introduction HR managers are facing many challenges in present business scenario like Globalization workforce diversity, technological advances and changes in political and legal environment change in information technology. All these challenges increase the pressure on HR managers to attract, retain and nurture talented employee. HR professional can’t ignore these challenges rather they ought to be line to design and execute innovative mechanisms of developing skills and competencies of human resources to prepare them to accept the emerging challenges. CHALLENGES MANAGEMENT OF HRM IN MODERN Globalization: At a political and economic level, globalization...
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...جامعة البترا | | Petra University | كلية العلوم الإدارية والمالية | | Faculty of Administrative And Financial Sciences | قسم إدارة الأعمالبرنامج الماجستير Business Administration DepartmentMBA Program | الفصل الدراسي Term:First Term | السنة الدراسية: Year: 2013/2014 | خطة المقرر Syllabus | اسم المقرر | International Business | Course Title | رقم المقرر | 301723 | Course Number | المتطلب السابق | - | Prerequisite Course | Course Objectives | This course aims to highlight the role and functions of multinational / global corporations and governments in international business. This is achieved through helping students be able to: * Define globalization and international business and show how they affect each other * Understand why companies engage in international business and why international business growth has accelerated * Discuss behavioral factors influencing countries’ business practices * Discuss the philosophy and practices of the legal system * Describe trends in contemporary legal systems * Profile the characteristics of the types of economic systems * Examine corporate responses to globalization in the form of codes of conduct, among other things * Understand why production factors, especially labor and capital, move internationally * Grasp company strategies for sequencing the...
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...Proton’s External Environment Analysis Contents Introduction 4 PART: 1 Proton Introduction 4 About Proton 4 PART: 2 Proton’s External Environment Analysis 5 2.1 PESTEL Analysis 6 2.1.1 Political and legal factors 7 2.1.2 Economic Factors 7 2.1.3 Social-Cultural Factors 8 2.1.4 Technological Factors 8 2.1.5 Environmental Factors 11 2.2 PROTON’s SWOT Analysis 12 2.3 Industry Analysis 12 Proton five forces model 13 2.3.1 Threat of New Entrants 13 2.3.2 Bargaining Power of Suppliers 13 2.3.3 Bargaining Power of Customers 14 2.3.4 Threats of Substitutes 14 2.3.5 Competitive Rivalry between Existing Players 14 2.4 Some other external factors 15 2.4.1 Change in Customer Demand 15 2.4.2 Globalization 16 PART: 3 17 Recommendation 17 3.1 How can we deal with the pressure of innovation? 17 3.2 Cost Control 19 3.4 Innovative feature’s pricing decision 20 3.4 Dealer knowledge in customers 20 Conclusion 20 References 22 Appendixes 25 Appendix-1 Supplier spending on R&D 25 Appendix-2 Changes in external force 25 Appendix-3 Critical industry skills 25 Appendix-4 Expected challenges of automotive industry 26 Introduction The report is going to conduct Proton external analysis and the report has been divided into main three parts. The first part will be discuss some background of the company. The secondary part complete external analysis through using PESTEL, SWOT and Porter five forces model. The third and last part...
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...of Starbucks | 3 | 3.0 | Introduction of PEST analysis | 4 – 6 | | 3.1 Political-legal forces | | | 3.2 Economic forces | | | 3.3 Socio-cultural forces | | | 3.4 Technological forces | | 4.0 | PEST components of Starbucks | 7 – 8 | | 4.1 Political-legal component | | | 4.2 Economic component | | | 4.3 Socio-cultural component | | | 4.4 Technological component | | 5.0 | Conclusion | 9 | 6.0 | References | 10 – 11 | 7.0 | Appendixes | 12 | 1.0 Introduction First of all, I would like to thank my lecturer, Miss Kanchini who is providing adequate information about the task which given in this Business Management assignment. For a business to be succeed in the market, each of the business need to analyze their surrounding environment for the purpose of increasing their revenue and to be stayed longer in that particular market. There having two types of environment to be analyzed which are internal and external environment. Internal environment of a business is indicating the strengths and weaknesses of a business that must be identified to do some changes on weaknesses and strengthen the strengths owned. For the external environments which influence the long run decisions of an organization also needed to be analyzed especially for the bigger company so that the business will last longer in the market. There are several types of external environment such as PEST, PESTLE, and STEEPLE analysis. (Wheelen & Hunger, 2006) From...
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...Hilton Hotels PESTEL Analysis PESTEL abbreviation is interpreted as political, economic, social, technological, legal, and environmental factors impacting businesses, and PESTEL is an important framework for assessing external factor impacting business practices. POLITICAL FACTORS Political stability is the key to the success of any industries and it is applicable to hotel industry as well and it needs to cope with political situations everywhere in the world. The political approaches can influence the number visitors, both, tourists and business travellers’ visits to a nation. It may a concern for many people those who are visiting Northern Ireland because of the ongoing very delicate political situation. Moreover, Hilton’s performance is directly affected by consumer protection and employment laws in UK, as well as, the nature of competitive regulation, and risks of military invasion in the country. ECONOMIC FACTORS National macroeconomic situation and factors and events impacting the situation are major factors affecting Hilton Hotels & Resorts business in the UK. For example, during the Olympic times in the UK most of the hotels were occupied and booked fully for the whole period. However, the situation was completely different once the Olympic Games were over. Additional economic factors that affect Hilton may include the extent of expected and real economic growth in the UK, national taxation policies, and seasonality and weather problems. SOCIAL FACTORS ...
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...LOVELY PROFESTIONAL UNIVERSITY Lovely school of management TERM PAPER MGT-511 Business Environment PESTLE Analysis of India Submitted To: - Submitted By:- Mr. Vishwas Chakranarayan Ashish Suman Roll No. RS1904A10 Reg. No. – 10905868 Acknowledgment My sincere thanks and gratitude to my faculty who inspired me by his able guidance and was a constant guiding light during the course. The support and knowledge provided by him has been a great value addition for me and will go a long way in building a promising career. Last but not least, I am also thankful to all the respondents of my survey without whom the Term Paper would not have been completed successfully. (Ashish Suman) Contents Page No. 1. Abstract : 4 2. Methodology : 5 4. About India : 6 4. Introduction : 9 5. PESTLE Analysis 7 Political : 10 Economical : 13 Social : 16 Technological : 17 Legal : 18 Environmental : 19 6. Conclusion : 20 8. References : 21 Abstract In this term paper Pestle analysis of India. How Organization take the analysis for setup the offices or industry in India. In this analysis tell the environment of India. Factors of India. Government policy, literacy, privatisation, legal problem, technology use India, any many factors given below. Methodology For This term Paper I search...
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...Chapter 2: The Political, Legal, and Technological Environment Learning Objectives and Chapter Summary |1. |INTRODUCE the basic political systems that characterize regions and countries around the world and offer brief examples of | | |each and their implications for international management. | | | | | |The global political environment can be understood via an appreciation of ideologies and political systems. Ideologies, | | |including individualism and collectivism, reflect underlying tendencies in society. Political systems, including democracy| | |and totalitarianism, incorporate the ideologies into political structures. There are fewer and fewer purely collectivist or| | |socialist societies, although totalitarianism still exists in several countries and regions. Many countries are | | |experiencing transitions from more socialist to democratic systems, reflecting related trends discussed in Chapter 1 toward| | |more market-oriented economic systems. | |2. |PRESENT an overview of the legal and regulatory environment in which MNCs operate worldwide, and highlight differences in | | |approach to different legal and regulatory...
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...The Great Lakes: Great Decision Rita Stroud-Lipsey Strayer University Professor: Dr. Barry Adkins BUS 499—Business Administration Capstone January 13, 2012 Introduction The main purpose of this essay is to analyze the social/demographic, technological, economic, environment/geographic and political/legal/governmental segments to understand the general environment facing Great Lakes. It will also describe how Great Lakes will be affected by each of these external factors. It will then analyze the lead additives industry in the U.S. using the Five Forces of Competition Model. The Five Forces will display the impact it has on the industry based on the analysis, in which it can then be determined if the industry is attractive or unattractive. Next this essay will describe who Great Lakes’ immediate, impending, and invisible competitors are and how Great Lakes measures up against these competitors. For the conclusion it will describe the main capabilities of Great Lakes. Great Lakes: Great Decision Perform an analysis of the social/demographic, technological, economic, environmental/geographic, and political/legal/governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors. Social/Demographic Social/Demographic: Great decisions are constantly being debated for the Great Lakes as to what factors tend to affect the Social and Demographic segment. Socially our society...
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...India India, officially the Republic of India is a country in South Asia. It is the seventh-largest country by geographical area, the 2 most populous countries, and the most populous democracy in the world. The Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the east, India has a coastline of 7,517 kilometres .It is bordered by Pakistan to the west, People's Republic of China, Nepal, and Bhutan to the north, and Bangladesh and Myanmar to the east. India in the vicinity of Sri Lanka, Maldives, and Indonesia in the Indian Ocean. Home to the Indus Valley Civilisation and a region of historic trade area and vast empires, Indian subcontinent was identified with its commercial & cultural wealth for much of its long history. Four major religions, Hinduism, Buddhism, Jainism and Sikhism originated country, while the Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium of CE and shaped the region's diverse culture. The British East India Company from the early eighteenth century and colonised by the United Kingdom from the mid-19 century, India became an independent nation in 1947 after a struggle for independence that was marked by widespread non-violent resistance. India is a republic consisting of 28 states and 7 union territories with a parliamentary system of democracy. It has the world's 12th largest economy at market exchange rates and the fourth largest in purchasing power. Economic reforms since 1991 have transformed...
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...Chapter 1 -The global manager’s environment Sources of Risk for International Managers -Exogenous- General environmental factors, industry-related uncertainties and some firm-specific uncertainties. -Endogenous- Uncertainties that arise from within the firm, and include managerial perceptions, attitudes and organizational perspectives. -Top two exogenous risks facing business leaders and policy makers for 2012 and the next decade would be severe income disparity (The unequal distribution of household or individual income across the various participants in the economy) and chronic fiscal imbalances (situation where all of the future debt obligations of a government are different from the future income streams) -Other issues: natural disasters such as 2011 earthquake in Japan, flood in Thailand, Political uncertainty in China and Middle East -Globalization has compounded the types and level of business risks. *Typical challenges that managers face involve politics, cultural differences, global competition, Terrorism and Technology. Managers in companies are struggling to find ways to balance their social responsibilities, their images, and their competitive strategies. -PESTEL- An analytical tool to develop and understanding of exogenous risk -Pestel analysis- Political, Ethical, Social, Technological, Environmental and legal understanding or environmental scanning that is CRITICAL if we are to strategically plan and develop our value proposition. -> Exogenous creates...
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