The document discusses five principal environmental factors that affect corporate strategy: competitors, creditors, customers, labor market, and suppliers. It explains how each factor influences business and strategy. Additionally, it discusses two key aspects - cost leadership and differentiation - that contribute to the overall environmental factors of a strategy. The document analyzes how external economic, political, social, and technological forces shape opportunities and threats for businesses.
Barack Obama race to the whitehouse: Explored through relevant management theorymilesweaver
Dr. Miles Weaver, Senior Lecturer in Strategy and Management. This lecture was first delivered to an audience attending one of Leicester Business School's Open Day events.
Discusses Barack Obama 'Race to the Whitehouse' explored through motivational and leadership theory. A sample for a taster lecture of a typical lecture at Leicester Business School, DMU.
http://www.dmubusiness.org/podcasts/audio/business/taster-lecture-miles-weaver-03-12-08.mp3
Reviews the major alternatives open to business executives during mergers, and the associated post-merger returns for companies adopting each of the three main alternatives.
The research suggests that the choice of corporate brand strategy is value relevant, and may play an important role in facilitating a smooth process of post-merger integration.
The Impact of Advertisement on Sales: Case Study in Some Selected Telecommuni...Liibaan Sagal
Abstract
This study was set out to establish the extent to which advertisement affects sales volume of selected
telecommunication companies in Mogadishu, Somalia; specifically the study intended to establish the (i) profile
of the respondents, (ii) extent of which advertisement, (iii) level sales volume (iii) whether there is a relationship
in the extent of which advertisement and the level of sales volume in selected telecommunication companies in
Mogadishu, Somalia. The study used a survey design; specifically descriptive correlations and descriptive
comparative; data were collected from 133 respondents using self administered questionnaires as the key data
collection instruments. The study findings revealed that there was a high level of which advertisement, there was
also high level of sales volume, the extent of advertisement and the level sales volume significantly differed
among telecommunication companies in Mogadishu city is significantly correlated with sales volume from the
above findings appropriate conclusion and recommendations include those for further research were made.
Assignment 3 Case StudyE-Business Strategy and Models in B.docxbraycarissa250
Assignment 3: Case Study
E-Business Strategy and Models in Banks: Case of Citibank
Bank is an institution that deals with money as well as credit. It accepts deposits from the public, makes funds available to those who need then and helps in remittance of money from one place to another (Macesich, George, 2000, p-42). Modern banks today perform a wide range of functions that makes it difficult to give an apt and precise definition of it. One of the famous economists, Crowther had said, a bank “collects money from those who have it to spare or who are saving it out of their incomes, and lends this money to those who require it”. In short, the term bank in modern times refers to an institution that deals with money i.e. accepts deposits and advances loans; has the ability to create credit which basically implies expanding its liabilities as a multiple of its reserves; creates demand deposits and it is a commercial institution that aims at securing profits.
Citibank is a subsidiary of Citigroup. Citibank was founded as City Bank of New York in the year 1918. According to the latest statistics, it is now the third largest bank holding company in the United States by the total assets after Bank of America and JP Morgan Chase. The bank has its retail banking operations spread over more than 100 countries and territories around the world (Harold, Cleveland & Huertas, 1985). Apart from the standard banking transactions, Citibank offers credit cards, insurance and other investment products. Their online services have earned them appreciation from every nook and corner, making them the most successful in the field. The 15 million online users bear testimony to the stated fact. The key people involved in the management of the bank are: Vikram Pandit (CEO), John Gerspach (CFO), Douglas Peterson (COO) and Willliam R. Rhodes, the Chairman.
Strategy literally means the way an action is planned to achieve the desired results. Every company has certain aims that it hopes to conquer. It has a vivid description of what it desires to achieve. The vision statement that company has is an idealized picture which inspires it, energizes its efforts towards directing its actions towards the expected goals (Hambrick and Chen, 2007, p 935-955). Strategic Decision Making, in context of a firm or an organization, is the framing of long term plan of action that aims at resulting in success and profits for the products and services marketed by the company, for instance (Triantaphyllou, 2000, p 320). Strategic decision making is important to outperform the various other competitors in the market. The process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose is known as Strategy formulation. In today’s era of cut-throat competition in the business environment budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm ...
Barack Obama race to the whitehouse: Explored through relevant management theorymilesweaver
Dr. Miles Weaver, Senior Lecturer in Strategy and Management. This lecture was first delivered to an audience attending one of Leicester Business School's Open Day events.
Discusses Barack Obama 'Race to the Whitehouse' explored through motivational and leadership theory. A sample for a taster lecture of a typical lecture at Leicester Business School, DMU.
http://www.dmubusiness.org/podcasts/audio/business/taster-lecture-miles-weaver-03-12-08.mp3
Reviews the major alternatives open to business executives during mergers, and the associated post-merger returns for companies adopting each of the three main alternatives.
The research suggests that the choice of corporate brand strategy is value relevant, and may play an important role in facilitating a smooth process of post-merger integration.
The Impact of Advertisement on Sales: Case Study in Some Selected Telecommuni...Liibaan Sagal
Abstract
This study was set out to establish the extent to which advertisement affects sales volume of selected
telecommunication companies in Mogadishu, Somalia; specifically the study intended to establish the (i) profile
of the respondents, (ii) extent of which advertisement, (iii) level sales volume (iii) whether there is a relationship
in the extent of which advertisement and the level of sales volume in selected telecommunication companies in
Mogadishu, Somalia. The study used a survey design; specifically descriptive correlations and descriptive
comparative; data were collected from 133 respondents using self administered questionnaires as the key data
collection instruments. The study findings revealed that there was a high level of which advertisement, there was
also high level of sales volume, the extent of advertisement and the level sales volume significantly differed
among telecommunication companies in Mogadishu city is significantly correlated with sales volume from the
above findings appropriate conclusion and recommendations include those for further research were made.
Assignment 3 Case StudyE-Business Strategy and Models in B.docxbraycarissa250
Assignment 3: Case Study
E-Business Strategy and Models in Banks: Case of Citibank
Bank is an institution that deals with money as well as credit. It accepts deposits from the public, makes funds available to those who need then and helps in remittance of money from one place to another (Macesich, George, 2000, p-42). Modern banks today perform a wide range of functions that makes it difficult to give an apt and precise definition of it. One of the famous economists, Crowther had said, a bank “collects money from those who have it to spare or who are saving it out of their incomes, and lends this money to those who require it”. In short, the term bank in modern times refers to an institution that deals with money i.e. accepts deposits and advances loans; has the ability to create credit which basically implies expanding its liabilities as a multiple of its reserves; creates demand deposits and it is a commercial institution that aims at securing profits.
Citibank is a subsidiary of Citigroup. Citibank was founded as City Bank of New York in the year 1918. According to the latest statistics, it is now the third largest bank holding company in the United States by the total assets after Bank of America and JP Morgan Chase. The bank has its retail banking operations spread over more than 100 countries and territories around the world (Harold, Cleveland & Huertas, 1985). Apart from the standard banking transactions, Citibank offers credit cards, insurance and other investment products. Their online services have earned them appreciation from every nook and corner, making them the most successful in the field. The 15 million online users bear testimony to the stated fact. The key people involved in the management of the bank are: Vikram Pandit (CEO), John Gerspach (CFO), Douglas Peterson (COO) and Willliam R. Rhodes, the Chairman.
Strategy literally means the way an action is planned to achieve the desired results. Every company has certain aims that it hopes to conquer. It has a vivid description of what it desires to achieve. The vision statement that company has is an idealized picture which inspires it, energizes its efforts towards directing its actions towards the expected goals (Hambrick and Chen, 2007, p 935-955). Strategic Decision Making, in context of a firm or an organization, is the framing of long term plan of action that aims at resulting in success and profits for the products and services marketed by the company, for instance (Triantaphyllou, 2000, p 320). Strategic decision making is important to outperform the various other competitors in the market. The process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose is known as Strategy formulation. In today’s era of cut-throat competition in the business environment budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm ...
GT Events & Program Guide: ForwardThinking August/September 2017Grant Thornton LLP
ForwardThinking is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Strategic Management in Dynamic EnvironmentsStrategy Compositi.docxflorriezhamphrey3065
Strategic Management in Dynamic Environments
Strategy Composition (3-4 Pages)
Deborah enters your office, and you notice that she looks apprehensive. “Hi, Deborah. What’s up?” you ask, hoping that nothing is wrong.
“Well, your team is doing an excellent job researching, and you’ve been keeping me up-to-date on your findings. My concern is that we are approaching this from a narrow-minded approach.”
“How so?” You ask. You are puzzled. “Our team has been looking at every aspect of the company and considering both internal and external pros and cons.”
“We need your findings put into some kind of management system so we can really see where we are headed regarding our global expansion. I think we need to cover our bases here. Please report back to me next week with your thinking put into a framework.”
Complete the following:
· A balanced scorecard suggests that we view the organization from four perspectives (the learning & growth perspective, the business process perspective, the customer perspective, and the financial perspective). Briefly discuss these four perspectives analyzing what each means to your organization? Based on this analysis:
· What other strategies would be a good fit for your company profile?
· Provide a brief overview of these strategies.
· Why is it important to have more than one strategy in mind when pursuing global expansion?
· The materials found in the M.U.S.E. may help you with this assignment such as the audio file Choosing a Strategy. This file provides real-world experience that may help you with this assignment. In addition to your textbook material, here are a few resources that may help you learn more about the basics of the balanced scorecard:
· http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard
· http://ap-institute.com/kpi-white-papers/what-is-a-modern-balanced-scorecard.aspx
You decide that Deborah has brought up another good point that should have been discussed in the beginning of the project. You make a note to add this to a list of project management ideas to help make future projects go smoother.
Complete the following:
· What other strategies would be a good fit for your company profile?
· Provide a brief overview of these strategies.
· Why is it important to have more than one strategy in mind when pursuing global expansion?
The materials found in the M.U.S.E. may help you with this assignment such as the audio file Choosing a Strategy. This file provides real-world experience that may help you with this assignment. (See BELOW for M.U.S.E.)
MU SE STUFF: The Benefits, Costs, and Risks of Doing Business in Another Country
The potential benefits, costs, and risks of doing business in a country are partly a function of its political and legal systems. A political system includes the structures, processes, and activities by which a nation governs itself. It is important for managers to understand whether a political system is characterized by wide or narrow participation because it forms.
GBS Sample 1Name_ID_GBS Task 1.pdf1 P a g e .docxshericehewat
GBS Sample 1/Name_ID_GBS Task 1.pdf
1 | P a g e
Global Business Strategy
Level 7 - Unit 7.2
International Business
Environment Analysis.
Report – Activity 1
Revised 18 Sept 2015
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Contents
Section Details Page
Activity 1
Introduction Company profile 4
1a International business environment Analysis Techniques 4 – 7
1b Analysis of the micro and macro of Marks & Spencer‟s PLC 7 – 8
1c The impact of international business environment on Marks & Spencer‟s 8 – 9
1d What does globalization mean for Marks & Spencer‟s? 9 – 10
1a (2) What is the extent of globalization on organizations? 10
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1b (2) Operating structures different organizations in international markets. 10 – 11
References 12
Introduction
Marks & Spencer PLC was founded in 1884.It has grown from a single market stall to an
international multi-channel retailer. They sell stylish, high quality value clothing and home
products as well as food, responsibly sourced from around 3,000 suppliers globally. Their
portfolio covers general merchandise, food, international and multi-channel across 54
international territories with nearly 86,000 employees.(Marks and Spencer, 2014).
International business environment Analysis Techniques
Business environment is the combination of internal and external factors that influence a
company‟s operating situation and the overall business. It is both Micro and Macro in nature.
Micro or internal factors are controllable and could include management style, organizational
culture, mission and value statement. Whereas Macro or external factors are uncontrollable these
http://www.businessdictionary.com/definition/combination.html
4 | P a g e
factors are often both dynamic & complex. Business environment factors can include new
policies, procedures, government changes, improvements in technology, social and economic
trends(Nonaka, I., and Takeuchi, H, 1995).The reason for analyzing the business environment is
to highlight opportunities and threats. Knowing the opportunities and threats to the business
allows the company to set a strong business strategy and understand better where to invest,
expand, diversify and downscale. There are a number of different tools we can use to analyse
both the Micro & Marco factors within a business.
Micro can be analysed with Porters 5 forces model.Porter identified that there are 5 key
forces that influence business that needed to be analysed in order to develop a competitive
advantage (Porter, 1985). These forces are supplier power, buyer power, competitive rivalry,
threat of substitution &threat of new entryand are used for strategic industry analysis. The
positives of using this technique to analyze is that it looks at a wider range of competitors and it
forces the business to look externally. However this is a relatively old model that may not be
suitable ...
Strategic ManagementChapter 1Dimensions of Strat.docxdessiechisomjj4
Strategic Management
Chapter 1
Dimensions of Strategic DecisionsStrategic issues require top-management decisionsStrategic issues require large amounts of the firm’s resourcesStrategic issues often affect the firm’s long-term prosperityStrategic issues are future orientedStrategic issues usually have multifunctional or multibusiness consequencesStrategic issues require considering the firm’s external environment
Multimedia Lecture Support Package to Accompany Basic Marketing
Lecture Script 6-*
Three Levels of Strategy
Corporate level: board of directors, CEO & administration [Highest]
Business level: business and corporate managers [Middle]
Functional level: Product, geographic, and functional area managers [Lowest]
Characteristics of Strategic Management Decisions: Corporate
Often carry greater risk, cost, and profit potential
Greater need for flexibility
Longer time horizons
Choice of businesses, dividend policies, sources of long-term financing, and priorities for growth
Characteristics of Strategic Management Decisions: BusinessHelp bridge decisions at the corporate and functional levelsLess costly, risky, and potentially profitable than corporate-level decisionsMore costly, risky, and potentially profitable than functional-level decisionsInclude decisions on plant location, marketing segmentation, and distribution
Characteristics of Strategic Management Decisions: FunctionalImplement the overall strategy formulated at the corporate and business levelsInvolve action-oriented operational issuesRelatively short range and low riskModest costs: depend upon available resourcesRelatively concrete and quantifiable
Company Mission
Chapter 2
Four Essential Components:Basic Product or Service Primary Market--WHOWhereFinancial position
Primary Company GoalsSurvival – A firm that can’t survive can’t satisfy its stakeholders. (Often taken for granted)Profitability –the mainstay goal of a business.Growth –is tied to survival and profitability. Broadly defined in terms of market share, etc.
Company Philosophy—BULLETS
Covers CustomersEmployeesManagementStockholders
Stakeholders SuppliersCommunitySocial responsibilityTaxesEnvironmental protection
AGENCY THEORY
Agency theory --based on the belief that the separation of the ownership from management creates a situation where managers will spend the stockholders’ money in ways they would not spend their own.
Agency Costs
The cost of agency problems plus the cost of actions taken to minimize agency problems are collectively termed agency costs.
How Agency Problems Occur
Moral hazard problem--Executives have disproportionate access to company information. Adverse selection--a problem caused by the limited ability of stockholders to determine the competencies and priorities of executives they hire.
Problems Resulting from Agency
Executives pursue growth in company size rather than earnings
Executives attempt to diversify their corporate risk
Executives avoid h.
Feedback from peersThanks so much for your response. Very welChereCheek752
Feedback from peers
“Thanks so much for your response. Very well done!
I like the competitive forces model and the broad factor analysis which are models that other students have not really discussed.
All of these models can add value. The important thing if the company has the resources in an ideal world is perhaps use both models or multiple models.
If you know anything about research if you do different types of research focused on the same topic and come up with the same answers then you know you've done a good job!”
__________________________
“Great post, I enjoyed reading about the competitive forces model and the broad factors analysis. I agree with you that this is a great tool to use to include the internal and external factors. Politics should certainly be understood before entering into a foreign country and setting up camp. Learning about the macro-environmental factors would indeed need to be known to understand the impact of the environmental surroundings of where you would intend to expand globally (Corporate Finance Institute, 2021).
The competitive forces model is also extremely pertinent as you mention. Knowing the competition and the current market is crucial to the success of the organization. I appreciate that you talk about how difficult entry gives you a competitive advantage. I don't know if I understood that before, but you make a very good point in that regard. So with the difficult entry the contract agreement, is longer and there are better benefits offered? “
__________________________
PEER Discussion post
After reviewing the response of Deborah, I also collaborate with her opinion that there are still more positive ideas that can lead to improvements in the global market planning strategies. The adoption of technology can lead to various promotions in conjunction with the local production at the international business. Different decisions made by the stakeholders are mostly triggered by the level of competition that exists on the organization's premises. Moreover, the present-day global competition entails some aspects which evaluate the market share. On most occasions, several organization strategies, including the multinational rivals, do not differ looking at the approaches, productivity, and experience.
Following the previous meeting with Deborah, I learned various aspects which as a team, we should all bear in mind, and these aspects entail the most suitable approaches concerning the movement in connection with more formal analysis (Harrison, Freitas, Drinnan, Campos, Masci, di Maria & Whitaker, 2019). With the traditional analysis approaches, one can better understand because the visual elements pictorial are always running in one's mind. Although the formal analysis aspect takes much or longer time to express certain information, it provides evaluations and definitions which don't require clerical explanations (Turkmen, den Hartog, Ranise, & Zannone, 2017).
Following the Tiffany and mike suggestion ...
Running Head ECONOMICS AND ADMINISTRATION1ECONOMICS AND ADMI.docxtodd271
Running Head: ECONOMICS AND ADMINISTRATION 1
ECONOMICS AND ADMINISTRATION 5
ECONOMICS AND ADMINISTRATION
Khalia Hart
Dr. Touhey
MGMT 640 – Financial Decision Making for Managers
March 31, 2019
EXECUTIVE SUMMARY
For the success of every business, there needs to be a strong supporting factor that enforces success. The success of a business indicates that the structure of decision making is tough, strict but at the same time lenient to staff and more importantly customers. Financial management is a very vital factor to consider while engaging in any business activity. Not only is it concerned about customers and staff, but also affects every aspect of the business from managing cash flow and maintaining performance index to developing plans to ensure maximum use of opportunities by business owners. Stakeholders and business owners need to realize the importance of financial management as a tool in business administration since it is the force that ensures continuous development of financial capabilities needed for a business to achieve its full potential.
The macro-economic environment addresses issues concerning behavior. Here are where aAdministrative issues lie. Administration can be categorized into two main categories, administration as a practice and as a science. Administration as a practice mainly addresses the normal routine of business owners and managers and their normal administrative roles in any business entity. Administration as a scientific field is bound to face challenges which are broken down into four main classes. They are discussed fully in this document.
Factors that affect administrative decisions include globalization, cost of control, the relationship between stakeholders and demand on ethical behavior and corporate responsibility. Administrations in different organizations should always be keen to ensure that the named issues are always put under the eye . These factors can greatly affect the performance of a business entity as shall be discussed in this document. Comment by debra touhey: Good start, Khalia. The Executive Summary should explain the problems at hand with potential solutions to those problems. Here is a good reference on writing Executive Summaries:
https://www.inc.com/guides/2010/09/how-to-write-an-executive-summary.html
INTRODUCTION
Since time immemorial, business has always been a very important factor in society. To date, business transactions take place daily through the various business entities that have been established. In the modern world, however, various guidelines, strategies, and tools have been established to ensure that business practices go on smoothly (Robert et al., 2004). Comment by debra touhey: A little too informal for graduate writing
One of the practices that have been developed to ensure maximum productivity in the various entities that have been established, is financial management. The financial management function allows for the planning, organizing, monitori.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
1. Assignment on Environmental Factor Affects<br />Submitted To<br />Name: <br />Lecturer in <br />Darul Ihsan University<br />Submitted By<br />Name: Ismat Ara Pinky<br />Roll: 33118<br />Batch: 33rd C<br />Darul Ihsan University<br />Date: 15th February 2011<br />Environmental factor affects on Multinational Corporation<br />Introduction:<br />Many leaders have catchy slogans on their desks; many have learned to believe in them (Giuliani, 2002, p 69). Organizations that promote learning are better equipped to handle the ever-changing business environment. Retailers are no different. When an organization’s leadership plans for the future it must take into account principle environmental factors. A company’s ability to compete will be affected by how well the leaders have learned to identify those factors, to demonstrate their company’s significance, and to estimate the extent or magnitude of each of the factor’s impact on the corporate strategy. In this paper, I discuss the five principle environmental factors as cited by Pearce and Robinson (2002). Further, I indicate the significance of environmental factors on the overall business strategy; discuss the two factors that enable<br />Leadership to understand the extent of the overall strategy on their company’s market position and lastly I discuss the impact of four external factors on the internal environment.<br />Principle Environmental Factors<br />Competitors<br />Every business has external peers that perform similar functions within their professional discipline. These peers are considered competitors and they are rival producers of goods or services. These competitors contribute to the overall industry by their ability to deliver goods and services of high caliber at competitive prices. Competition is good from a market perspective as it gives consumers choices and provides the businesses and opportunity to create a niche. In Ellis’ Fast Company article (2002), he cites six strategies to apply in strategy formulation. Number 4, understands your competition’s weakness and then exploits it. He cites Blockbusters late fee drill as an example of how a new competitor, Netflix, could influence customers to try their product over Blockbuster. With Netflix, there are no late fees, and you can keep <br />a movie for as long as you like. Competitors are purchased as a strategic move to gain market share for example in Chainstoreage.com article (2004) “Whole Foods<br />Market, Inc is cited spending $38 million in stock to acquire Fresh and Wild Holdings Ltd, a U.K. natural and organic food chain.”<br />Creditors<br />Most businesses purchases goods and services much like a consumer. However, they do so to large extent on credit as they are able to get discounts or other incentives to buy in bulk. When businesses buy goods and services on credit the business that holds the note or paper is referred to as a creditor. A firm’s power and prestige in domestic markets may be significantly enhanced with the right credit resources. Enhanced prestige can translate into a better negotiating position with other creditors, suppliers, distributors and other important groups (David, n.d.).<br />Customers<br />Customers are an essential part of any business, without the customer there would be no need for the business. Regardless of the product or service provided, a business must be able to leverage their marketing and production to ensure they satisfy consumer demand. Hammonds (2003) cites Zuboff and Maxmin (2000) in his Fast Company article “People, have changed more than the commercial organizations. A new opportunity is found in that chasm that separates individuals and organizations. In it lies the key to a new economic order with vast opportunities. Companies that learned to change with their customers will benefit from expanding consumer confidence and increased buying.<br />Labor Market<br />Just as customers are a key element of business success so are the employees that an organization hires to represent their interests. Having quality human resources is very important. The lack of talented people can cripple a company and foster a negative customer experience, which could potentially lead to customer dissatisfaction. To grasp the impact of company’s employee turnover level, you must first have a sense for the performance levels of the leavers and whether you could have had any influence over an employee’s decision to depart. However, in these times of high employee mobility and two-career couples, some employees may leave a firm for reasons unrelated to their jobs (Becker, Huselid & Ulrich, 2001, p 98). Turnover is one reason organizations must tap into the labor market to fill open positions. A strategic Human Resources partner can be a key asset in developing a plan to address future employee needs. <br />Suppliers<br />The role of the supplier is similar to that of the creditor in that the business is relying on a third party to supply customer demand. In the case of the supplier an organization could be procuring parts, services or other tangible goods to create or enhance a product or service for sale. Bargaining power of suppliers affects their ability to raise prices. Suppliers are likely to be powerful if: they have few competitors, each individual purchase represents only a small amount of their company’s sales, there are not good substitutes of the product purchased, and the product or service is unique (Dobbins, n.d). Suppliers play a key role in such transactions; poor production or planning could devastate the sale of a business. <br />The magnitude of environmental factors<br />There are two key aspects that contribute to the overall environmental factors of a corporate strategy: cost leadership and differentiation. Segal-Horn (2002) defines cost leadership as a strategy that strives to produce goods or services more cheaply than<br />Competitors (p. 270). It stresses the efficient scale of facilities, the pursuit of cost reductions in manufacturing, and the minimization of expenses including product R&D, services, selling and advertising. Cost leaders try to supply a standard, no-frills, high volume product at the most competitive possible price. Differentiation as cited by Segal- Horn (2002) and Porter (1980) aims to create a product that is perceived as uniquely attractive. It emphasizes strong market abilities, creative and well-designed products, a reputation for quality, a good corporate image, and strong cooperation from marketing channels. <br />Economic<br />The economy has a significant impact on the viability of a corporate strategy. For example in retail, if Florida has an ice storm in the winter and all orange crops are destroyed, the price of oranges and orange juice will increase. This is a small example of how one localized disaster can affect the price of a commodity. According to Develop Vision and Strategy (n.d.), a micro level assessment considers the industry and market in which a company competes, the customers who purchase its products, the competitors, and competition who threaten it, and the suppliers on which depends. On a larger scale, if the business plan is not successful and the firm sustains losses over multiple business cycles, the management may reduce staff as a means to lower expenses. The reduction in workforce increases the local unemployment, which has the ability to negatively influence revenues and the tax base of a local economy.<br />Political<br />The current political climate can influence the types of legislation that can influence corporate spending or tariffs on goods and services. Political factors can be restrictive or beneficial. Restrictive factors are those factors that limit profits; such as constraints placed on enterprise through fair-trade laws, antitrust laws, tax laws, minimum wage legislation or pollution laws as cited in Develop Vision and Strategy (n.d.) and Pearce and Robinson, (1985). Examples of this would be luxury taxes on big-ticket items or capital gains taxes. Governmental influences are of particular interest to those enterprises that operate in foreign countries where the political environment is volatile and information is scarce.<br />Social<br />Certo (1997, p. 51) defines social responsibility as a managerial obligation to take actions that protects and improves both the welfare of society as whole and the interests of the organization. In recent years there have been multiple corporate ethical issues that<br />Have influenced social views on corporate America. The number of high profile scandals, from Enron to MCI WorldCom, has adversely affected public’s perception of corporate strategy as it relates to decisions that affect shareholder and employee interests.<br />Technological<br />Technology factors are the scientific advances, which influence the competitive position of the enterprise. Maintaining awareness of new technologies decreases the probability of becoming obsolete and promotes innovation. Advancements in technology can impact the transformation plan in many ways. New technology as cited in Develop Vision and Strategy (n.d.) can change the demand for a product, render current manufacturing processes obsolete, and reduce costs to undercut competitors, produce new products and a host of other possibilities.<br />Conclusion<br />According to Pearce and Robinson (2002), the external environment of a business consists of two interrelated sets of variables that play a principal role in determining the opportunities, threats and constraints that a firm faces. Variables originating beyond and usually irrespective of any single firms operating situation (economic, political, social and technological forces) form the external environment. Variables influencing a firm’s immediate competitive situation (competitive position, customer base, suppliers, creditors, and labor market) constitute the external operating environment. These two sets of forces provide many of the challenges faced by a particular firm in attempting to attract or acquire needed resources, and when striving to profitably market its goods and services.<br />References<br />Becker, B., Huselid, M., & Ulrich, D. (2001). The hr Scorecard: Linking people, strategy, and performance. <br />Boston: Harvard Business School Press.<br />Certo, S. (1997). Modern management. Upper Saddle River, NJ: Prentice Hall.<br />Ellis, J. (2002). Strategy [Electronic Version]. <br />Fast Company, 64, 66. Retrieved August 25, 2003, from http://www.fastcompany.com/magazine/64/jellis.html.<br />David, F. (n.d.). Strategic management: Comparing business and military strategy.<br />Retrieved August 30, 2003, from Yahoo.com via<br />http://myphilip1.pearsoncmg.com/abdemo/abpage.cfm?vbcid=3166&vid=1211.<br />Develop Vision & Strategy. (n.d.). Retrieved August 31, 2003, from<br />http://arr.uta.edu/eif/dru_diss/a13_tx.html<br />Dobbins, C. (n.d). 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