Premium Essay

Factors That Affect a Business

In: Business and Management

Submitted By adjara
Words 638
Pages 3
INTERNATIONAL BUSINESS CASE STUDY

Assignment 11/29/2014

CASE STUDY OF DECEMBER 2014 ABE EXAMS

Suggested questions

1) Using the PESTLE framework, analyse JCB global environment

- Political factor: JCB political risk is not specified in the case study. But as a multinational, it is impacted by the political decisions of countries where it operates.

According to the text, JCB is in a position of prevention. The company is implemented in countries where political riks are low. Even if they have potential market to sell compaction equipment in key developing country such as Africa, they are not ready to enter this market if there are no favorable political conditions.

Control or restriction of it operations

- Economical: The economic environment includes factors of production such as land, labor and capital. The company could analyze the income figure as the Gross Demographic or the Gross national Product of countries where they peroate as a guide to a specific market size.

The inflation and the recession can also affect the operational cost of the company. This need to be observer and manage specially for some south American countries that have experienced high inflation rate, for example, Mexico has succeeded in bringing its inflation rate down from over 100% to under 10%.

Other economic influence s that can be important are the level of government budget deficit or surplus.

- Social and cultural factors: In the text, we notice that the JCB brand is accepted and integrated in different various circles (song, movie TV programme, old and young are aware of the brand)

|JCB...

Similar Documents

Free Essay

Factors That Affect a Business

...Assignment 1 Introduction In this business assignment we will be investigating JCB and Rotary as businesses, analysing the factors that affect a business. This will include stating stakeholders for these businesses and understanding how each one of them may affect business activities. These stakeholders include trade unions, employees, local communities, customers and many more. We will also be investigate economical, environmental, political, social, legal factors on these businesses and explain how they affect the business and its activities. JCB What is JCB? JCB is one of the world’s biggest and leading manufacturers of construction material. They are world renowned, have a very iconic brand and sell to almost all of the countries around the world. JCB employ over 10,000 people on 4 continents and sell their products in 150 countries through 2,000 dealer depot locations. JCB is a Private Limited Company (LTD), whereby the responsibility has been passed down through the family from original owner Joe. C. Bamford to his sons Lord Anthony and Mark Bamford. Being a Private Limited Company (LTD) allows them to have better protection over their brand and they have the ability to sell shares privately or invite in a partner to assist in business decisions if they choose to. JCB’s operation lies within the secondary business sector, in turning raw materials into a finished product ready for sale. They rely on the primary business sector to provide them with the materials in......

Words: 5439 - Pages: 22

Premium Essay

Enviromental Factor as It Affect Business

...OF STUDY There is controversy that small and medium scale business in any country where they operate play important role in the economic growth and development of that country or nation and it improves the quality of life of individuals (Ohanemu, 2006). Business organizations anywhere in the world operates within environments which according to Adidu & Olanye (2006) is an aggregate of all conditions, events, circumstances and influences that surround and effect the business organization. In management, the term “Environment” does not necessarily mean physical surroundings but, it is used as a total forces, factors and influences that surround and affect business organizations as a separate entity as well as other business organizations. This means that business organizations must interact with those forces that influence its decisions, directions, actions, size, health, profitability and performance of the organization as a whole. Ukaegbu (2004) stated that the contemporary environment is becoming dynamic and competitive and since business organizations do not operate in vacuum, they affect and are affected by environment conditions. Therefore, business organizations irrespective of their objectives must take into consideration, these environmental opportunities and constraints. Businesses affect the environment by providing the required goods and services thereby contributing to the development of the business by presenting opportunities and threats. One thing to......

Words: 703 - Pages: 3

Premium Essay

Swot Analysis

...Economic Factors and Legal Considerations That may influence ABC Complete Kitchen Inc., SKS5000-8 Comprehension Strategic Knowledge Studies Mohamed Benhalla October 26th, 2014 Professor Karl LIyod Memorandum To: ABC Completes Kitchen, Inc. From: Mohamed Benhalla Date: October 26th, 2014 Subject: Micro- and micro- economic factors and legal considerations Firms operate their business in climate of dynamic business environment and ongoing process, which is not steady due to many factors that influence their operational activities of business. The economics factors, and legal factors are among the very important factors that affect the economy as in the whole and the business in particular. To operate a business successfully in the dynamic environment and to follow the changes of the market, the broad of directors of ABC Complete Kitchens, Inc., should include economic and legal consideration in operations plan, to have reliable market conditions and avoid the product liability. However, the economic factors can be described as the external or internal factors that impact the financial status of the business such as labor costs, taxation, and interest rate etc. Where in the other hand, legal factors are the laws and rules that regulate the business to behave in the right way such organizational law, employment law, contract law, and securities law etc. This memorandum will describe and a will analyze the macro- and micro- economics factors that......

Words: 2141 - Pages: 9

Premium Essay

Economic Factors

...Economic Factors & Legal Concerns Introduction The current business environment is an ever-changing and dynamic environment where most business operates. There are a number of factors that can have an impact on the operation of a business. These items are legal factors which can be an important factor that should be kept in mind while a business conducts its business activities. Another will be that of economics and the associated factors, these are considered the most important factor in all other external factors that affect the operation of a company or organization and will be at all levels which will include the local levels, and the state and national levels as well (Conklin, 2006). The economy is always going to be a concern that could affect organizations effectiveness. It is important for management to consider economic factors and legal concerns in conducting business operations. The economic factors are described as the factors that affect the financial issues of the businesses to include labor, taxes, interest rates, etc. The business environment entails both internal and external factors. The external will be the ones that are beyond the control of the business itself. The internal factors will be items that can be controlled by the business. Economic policies of government, capital market and business cycle are an important part of the economic environment of a business. The legal environment will include the laws and rules that regulate......

Words: 1480 - Pages: 6

Free Essay

Klmkl; Jknn

...P6 How political, legal and social factors are impacting upon the business activities and stakeholders of McDonald’s Contents page 1. Introduction 2. McDonald’s 3. Aims and objectives 4. Political factors 5. Political factors in UK 6. Political factors in USA 7. Social factors 8. Social factors in UK 9. Social factors in USA 10. Legal factors 11. Legal factors in UK 12. Legal factors in USA 13. Referencing 14. Bibliography Introduction In this report I am going to be talking about McDonald’s and how as an organisation it is influenced by political. Legal and social factors in two different business environments. McDonald’s McDonald’s is a global organisation that is known all over the world. It is an organisation which has gone from strength to strength since it first opened its doors. It serves more than 60 million customers daily in more than 100 hundred countries worldwide. It has taken over the hamburger market and now is the largest chain of fast food restaurants in the world. They are a really popular organisation and are well known all over their logo is recognised by almost everyone around the world. In 2012 McDonald’s had sales revenue of $27, 5 billion and a profit of $5, 5 billion. These numbers on their own show you just how big the McDonald’s organisation is they make a huge amount of money and that shows that they are achieving what they set out to do as an organisation because McDonald’s is...

Words: 1746 - Pages: 7

Premium Essay

Business

...Describe how political, legal, social factors are impacting upon the business activities of the selected organisations and their stakeholders: Sports Direct Political How the local, national, and international developments could affect the organisation and in what ways this could happen. Economical Nationally and internationally environmental issues that could affect the organisation Social Social and developing trends that an organisation might use or operate for future planning. Technological The various types of new technology can put impact on a competitive advantage with other organisations. Political factors These political factors are laws and regulations that are made by the government that could affect the business (legislations.) Many types of businesses and organisations can be affected by these laws. Political factors can cover a number of things from both national and international laws (European Union) e.g. employment of people within UK (Sports Direct-working permit), environmental issues such as Sports Direct - insuring that their products are recyclable and government e.g. taxation. Economical factors The economy plays a huge effect on businesses for example if the consumer spends more at Sports Direct then the business will attentively receive more revenue (income.) If the government raise taxes this then raises the costs of the business and could therefore affect what people buy, what the business sells and how much they sell......

Words: 597 - Pages: 3

Premium Essay

Blank

...1. The Factors in Purchasing A Personal Computer You are considering purchasing a personal computer. What factors would affect your price sensitivity in making the decision? How would those same factors affect the ... www.brainmass.com/business/other/258403 - Cached 2. price sensitivity 1. You are considering purchasing a personal computer. What factors would affect your price sensitivity in making the decision? How would those same factors affect ... www.brainmass.com/business/other/437778 - Cached 3. [PPT] The Pricing Strategy Pyramid Microsoft Powerpoint ... You are considering purchasing a personal computer. What factors would affect your price sensitivity in making that decision? How would those same factors affect the price sensitivity of some ... www2.bc.edu/~smithgg/F-05_814_Pricing_Strategy.ppt 4. Key- Proc 5830 Pricing - Term Papers - Maragyrl86 Key- Proc 5830 Pricing 1. You are considering purchasing a personal computer. What factors would affect your price sensitivity in making the decision? www.termpaperwarehouse.com/essay-on/Key-Proc-5830... - Cached 5. The Pricing Strategy Pyramid - docslide ... You are considering purchasing a personal computer. What factors would affect your price sensitivity in making that decision? How would those same ... some personal computer ... www.docslide.com/the-pricing-strategy-pyramid - Cached 6. Decision Making Keywords and Phrases - University of ... ... can be made that those decision makers......

Words: 456 - Pages: 2

Premium Essay

Mgt230

...Internal and External Factors Paper J.Simpson; Eileen Reyes; Kevin Fears; Ashley Brown; Brittany Team A University of Phoenix MGT/230- Steven Friloux November 23, 2015 Internal and External Factors Paper Introduction The four management functions are influenced by internal and external factors. In our learning team’s paper, we will discuss some of the factors that affect the functions of management in a global environment. From internal factors, such as leadership styles and company procedures, to external factors like political and economic risks, it is obvious that delicately managing employees, in order to affectively address those functions, is of utmost importance. Explain how internal and external factors affect the four functions of management (planning, organizing, leading, and controlling). Internal factors are factors that affect the workings inside the business like accounting functions, leadership style, management changes, and procedures on how the business operates. Internal factors are important to how you run a business. The basic universal language are the accounting principles. You must understand the function of this to know how to run the business. A company’s leadership style impacts organizational culture. Leaders have to be able to communicate effectively. Also, the strength of the employees is an important internal factor. Hard-working and talented workers produce better results for a business. Procedures deal with how you execute...

Words: 1470 - Pages: 6

Free Essay

Miss

...How Political Factors Affect Business Activities in Asian Countries . Contents . 1. Introduction………………………………………………………………………..……..3 2. Political Factors That Affect Business………………………………………...4 1) The Case of Toyota Motor Corporation………………….….……..5 2) The Case of Taiwan………………………………..…………….…….…….8 3. Conclusion…………………………………………………………..…………………..…9 4. References……………………………………………………………………………..….10 Introduction For every business, internal factors, such as the company’s culture, vision, and its own products are extremely important for their success. However, the external factors are also so important that every business should pay special attention to them. A model has been invented to describe those external factors that influence business activities. This model is called the “PESTLE Analysis”, which is formally known as “PEST”, and was first invented by Francis Joseph Aguilar, in his book “Scanning the Business Environment”. PESTLE Analysis is a model to analyze external factors that may have impact on business activities. P stands for Political, E,S,T,L,E, stand for Economic, Social, Technological, Legal and Ecological.(Francis, 1967) In this model, the first factor, the political factor, can impact most aspects of our society, whether for individuals or organizations, in developing countries or developed countries. The reality is that any strict policies, tense political situations, or even a little transformation may cause the business to suffer......

Words: 2112 - Pages: 9

Premium Essay

Rahim Afrooz

...A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTLE analysis is in effect an audit of an organization's environmental influences with the purpose of using this information to guide strategic decision-making. The assumption is that if the organization is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes. To help make decisions and to plan for future events, organizations need to understand the wider ‘micro-economic’ and ‘macro-economic’ environments in which they operate. (The micro-economic environment is the one in which we operate and have limited influence or impact, the macro-environment includes all factors that influence an organization but are out of its direct control). An organization on its own cannot affect these factors, nor can these factors directly affect the profitability of an organization. But by understanding these environments, it is possible to take the advantage to maximize the opportunities and minimize the threats to the organization. Conducting a strategic analysis entails scanning these economic environments to detect and understand the broad, long term trends. A PESTLE analysis is a useful tool for understanding the ‘big picture’......

Words: 2875 - Pages: 12

Premium Essay

Levels of Management

...skills and styles of management. Contemporary approaches to management are widely used guidelines for managers. There are four contemporary approaches to management; Sociotechnical systems theory, Quantitative management, Organizational behavior, and Systems theory. Sociotechnical systems theory is an approach to management that suggests organizations are effective when their employees have the right tools, training, and knowledge. Employees being the social system and their knowledge being the technical system. This theory ascertains the idea that by ensuring the employees have these factors they will be able to make or produce product valued by consumers. Developed in the late 1950’s researchers believed workers should be given the freedom to fix mistakes early on that would result in waste, rather than later in the process. This approach promoted teamwork and work groups as an important factor for creating an efficient product system. Quantitative Management, adopted in the late 1940’s-1950’s is an approach that focuses on the use of science and math formulas as a management tool. By making a mathematical model of a problem managers can get a better view at the situation and have some aid in the decision making process. However typically managers do not focus solely on this technique, instead they use it as a tool for their decision making. This tool can help compare alternatives or even eliminate weaker options. Organizational behavior studies the understanding of......

Words: 916 - Pages: 4

Premium Essay

P6 Assignment

...Assignment 6 There are different factors which effect Morrison’s and Tesco. Even though they are both supermarkets, Morrison’s is a national business and Tesco is International, which means that they have different ways in which there business will work as the different laws and government. Morrison’s political factors that will affect their business activity is the tax rate in the UK, the UK tax rate changes all the time, and as the tax increases it means that the income will decrease, even though when tax increases, Morrison’s could raise the prices of their products that would mean that customers would not want to pay for the products, especially considering if the tax rate increased. The government policies in the UK will have to be considered, and Morrison’s would have to run so that the policies apply to their business, for example they follow the procedures for safe food. As Morrison’s are national, and are only based in the UK it means that there is only 1 government that they have to follow to, so the number of policies will be much less and this means that it will much a lot easier to be able to follow the legal policies. However as the tax increases, the income then decreases, this will affect the business by Morrison’s wouldn’t be able to raise their prices by much because customers will be affected by their own taxes so won’t want to pay more for products they originally thought they could afford, so the number of customers will decrease if taxes increase and......

Words: 2906 - Pages: 12

Premium Essay

Cafe Primo International Corporation

...analyze external factors that can affect your company or your business. Why do we need PESTEL? We need to know PESTEL because we will be able to determine the different factors that can affect the performance and activities of the company or business in a long-term basis. After analyzing PESTEL, we will be able to understand the relationship of external and internal factors that will help the company strategize and plan for their future activities. The company I chose to analyze is Café Primo International Corporation. It is corporation that is fully owned by Filipinos based here in the Philippines. The corporation is engaged in the production, marketing, and distribution of its own brand, Café Primo Coffees. They are registered in the Securities and Exchange Commission last 2012. Café Primo International Corporation is a member of Teodoro Group of Companies committed to establish for a prime and highest objective in developing integrated, world-class products and services which enhances quality and healthy, yet affordable products intended to augment the able physical and mental condition of their people, and thus, help them attain the comfort of living a healthy and livelier lifestyle. This corporation is located in New Manila, Quezon City, Metro Manila, Philippines. That is why it should comply with the laws, rules and regulations of the Philippines. These factors can apply to two of the factors in PESTEL which is the Political and Legal factors. One of the......

Words: 3377 - Pages: 14

Free Essay

Sycdsfsafasfsdf

...asfasfsfsafsafsding PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important for Samsung. As PESTEL is one of the frameworks that help to understand market growth or decline, business position, potential and direction for operations (Kotler, 1998). We hope that after reading this report, you will agree that PESTEL really affect how a company works. ing PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important for Samsung. As PESTEL is one of the frameworks that help to understand market growth or decline, business position, potential and direction for operations (Kotler, 1998). We hope that after reading this report, you will agree that PESTEL really affect how a company works. ing PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is......

Words: 461 - Pages: 2

Premium Essay

The Impact of Political, Legal and Social Factors on Two Businesses

...The Impact of Political, Legal and Social Factors on Two Businesses All businesses in the world have to obey to the political, social and legal factors that are within the world. These factors can have both a negative and positive effect on the business. The businesses I will be concentrating on is Toys ‘R’ Us and National Health Service. Toys ‘R’ Us Political Factors Political factors that affect businesses include new legislation such as the national minimum wage and setting tax rates such as VAT or Corporation Tax. Most business operators will keep a watchful eye on any political factor, such as new laws or regulatory shifts, which could have a substantial impact on how their company operates. Politics can affect a business in many different ways. For example grants, taxation and support. All these can change the outcomes of the business. They can affect profit, customers and revenues. Taxation can affect every business in the world including Toys ‘R’ Us. Taxes are collected by national government and local government. Taxation helps the government ti raise revenue and also enables it to discourage various activities and to encourage others. This can include many things such as: cigarettes to discourage smoking or high fuel composition cars to discourage pollution. In March of every year, the government release information about the changes of taxation. Toys ‘R’ Us have to discuss if they are going to make their products more expensive in order to cover lost profit. If......

Words: 1817 - Pages: 8