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Factors That Affect a Business

In: Business and Management

Submitted By adjara
Words 638
Pages 3

Assignment 11/29/2014


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)


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