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Factors of economic development
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Economic Factors - With globalization comes a wealth of opportunities. Globalization directs the construction of the worldwide consumer, someone who is familiar with the brand and anticipates the same superiority of merchandises and services despite their location. Secondly, the exchange rate may influence financing and cash flow causing the company to take risks, based on the fluctuating rates. Also the elasticity in corporate spending, inflation or deflation, or the global recession could affect the demand for personal equipment which could negatively influence investments and profit margins.
Political Factors - Political fluctuations can have an adverse influence on PPQ Parts. Political instability among singular markets can be very demanding. Managing federal, state and local legislation while running internationally dispersed personnel could pose to be a threat to PPQ Parts. Furthermore terrorist attacks and political instability would also negatively influence investments and profit margins. PPQ Parts is also subject to at home and at broad competition, piracy, laws and regulations.
Technological Factors - Since the conception of the internet, companies have been vastly transformed. E-business has eliminated geographical barriers and time zone boundaries for organizations. PPQ Parts has played a major role in technical connections, and with that connection, came the awareness to improve quality, advance technology and advance consumer relations. Technology has also aided in reducing operational costs, and has made the business unit run more efficiently.
In order to create a 4 year strategy, an internal resource analysis would need to be address, and information would need to be gathered by means of the Board members, sta...
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... established successful company; however there are risks (Quickmba, 2010).
The opportunity exists to expand and enhance growth in market share. (1) Diversified financiers invest in multiple businesses, and are more than likely willing and able to accept the risks. (2) Joint venture with another company in the foreign market. (3) The innovative quality product will gives the company cost advantage by filling a niche in the market. (4) It is also beneficial that PPQ Parts has a strong brand, and name that is highly recognized (Quickmba, 2010). On the downside (1) stakeholders may want to back out if there is a better offer elsewhere; (2) customers may find they are stuck with non-supported product; (3) employees may be stuck with making less, or risk being laid off; (4) pay may not be received if the business fails (Quickmba, 2010).
Works Cited
(Quickmba, 2010)
The benefits to those organizations that choose to embark on the process of developing a long-range plan are numerous as well as invaluable. Organizations that commit to such planning are able to establish objectives and priorities, make clear their future direction, adapting to both internal and external environmental changes, resolve major issues that impact the organization and obstacles and provide a clear and justifiable rationale for decision making (Bryson & Einsweiler, 1988, p. 3). Ultimately, the public is better
How has the use of technology changed its interaction with its suppliers? Wholesalers? Other business partners?
BUSA 4126 has given me the chance to study the different business policies and strategies a company has to consider when operating. Numerous topics in this course have given me a better insight on companies that interest me such as Nike, UPS, Nestle, and the NFL to name a few. A few of the topics that interested me most were the subjects of creating and linking the companies vision and mission with its core values, key success factors, competitive advantage, key resources and capabilities, and the four test of a resources competitive power.
You may see decrease in margins from expedited shipping costs increased. Slow to market growth, loss of market shares, possible rise in the cost-of-goods sold, lower cost-of-goods sold, below normal performance targets, increased cycle times, you may see a rise in complaints from major customers for poor service, and customer service, response times and poor supplier performance. Not to mention changes in local, national and international commodity prices for goods needed in the manufacturing process, such as energy, fuel, and transportation costs etc.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
A strategic analysis provides an examination of both the internal and external factors impacting on the organisation (Papulova & Gazova, 2016). City
The strategic recommendations provided will improve and enable the business to cope with the competitors, while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the business. In the case study, it was discovered that there were sources of opportunities in which the company would invest.
Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ...
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
The firm expands its business globally in various regions to develop their business wherein the exposure depends on the size of the firm, country and industry affiliation. The industries are significantly exposed to exchange rate movements and trade by the share of imports and exports. Exports help in increase in the annual revenue by shipping the products from one country to other and when importing the products from other countries the country has to pay the import duty which includes the cost, insurance and freight (CIF) and taxes.
• What resources will this action plan require from finance, human resources, marketing, operations, and other functional areas and departments?
A large scale production would not work well with the focused differentiation strategy highlighted in section 4.2. A proposed solution to the potential entrepreneur is to lower overall costs so that they can move away from a focused differentiation strategy into a hybrid strategy since the company can gain its competitive advantage through both low cost and value. Moreover, while TT is an economic recession, finance experts claim that this is a good opportunity to make an investment so that when the economic cycle resets, the business can be boosted. Finally, now that the venture’s attractiveness have been covered, it is vital to discuss the risk factors a potential entrepreneur will
This is a crucial part of a strategic analysis because ‘…organisations do not exist in a vacuum, they are part of a complex world’ (Bowman 1987:61) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to ‘…contribute to answering the key managerial question…’of what ‘…opportunities and threats might arise in the future’ (Johnson & Scholes 2002:99).