This is another distinction example i will be providing and this is part C/D to unit 5 international business. presents a situational analysis of different markets and is accompanied by a summary of the analysis findings
I drafted an essay for a publication that presents a situational analysis of different markets and is
accompanied by a summary of the analysis' findings. I have gathered information on two nations that
are Liechtenstein and Iran
I will choose between Liechtenstein and Iran to see if one of those two nations is the best place for the
international expansion of my chosen company, Primark. Both a highly thorough PESTLE examination of
each country and information on how those countries may affect global trade are included in this study.
The article also discusses research on 8 distinct cultural influences and how they uniquely impact global
businesses, including:
Language, population ethnicity, and social structures
Openness to change, Values, Business Attitudes, Work Attitudes, and Religion
A PESTLE study will assist in weighing the advantages and disadvantages of an international business
expansion. Here are the outside forces that affect enterprises but over which they have no control.
PESTLE analyses consist of:
Political Economical Social Technological Environmental Legal factors
We can decide which nation is best for Primark to grow into by performing a PESTLE study on each one.
It aids in determining whether a nation is conducive to commercial expansion and will guarantee that
objectives be attained without the interference of external threats. Primark needs to make sure they
meet the requirements of every nation.
It is crucial to conduct this article before engaging in business with them because doing so could backfire
and cause significant losses for Primark.
Political
One of these factors could be covid-19 as this has affected many businesses but Primark especially, this
is because during covid-19 we had been introduced to a lockdown and during the lockdown we was not
allowed to leave the house and due to this happening, we were not allowed to go into shops and due to
Primark not doing online deliveries they had to close stores due to the cost of keeping them open would
be expensive and they would also lose money in the process keeping the business running due to them
having a massive decline in sales. So, because of this being a major external factor they had to tend to a
few matters which they had to tend to and by doing that they closed all stores until lockdown was lifted
and stopped producing clothing as they would have backlog of stock and warehouses would be filled
due to the amount of unsold stock making them also lose money in the long run. So, by closing
everything it had a significant factor in letting them survive.
Economic
Covid-19 would be a huge external factor as many businesses like Primark had a decline due to covid-19
and due to this decline, many of the shops had to close due to lockdown that the government
implemented due to the spread of the virus, because of these many companies and businesses such as
, Primark had to be closed temporarily as it would not be ethical to keep the shops open due to no one
being out buying their product so economically they lost major sales due to the pandemic, they would
also stop manufacturing goods as no one could come into the shop and buy them since they do not do
online orders and they have no delivery drivers. So, to conclude, this Primark would not have sustained
themselves due to the pandemic if they had their shops open so to save everything, they shut factories
and shops down to save money that will help them survive.
Social
One factor could be trends at the time so for an example Christmas went by so Primark decided to
release seasonal clothing and accessories so by the Christmas demand they started to release clothing
and accessories to meet that demand, which helps them financially as they gain more sales. By doing
this and following trends it helps the business expand and grow due to the fact they can follow trends
like seasonal trends as they can always rely on those seasons to make clothing following the trends
which benefits the customers and the business.
Technological
Technological factor would be the technology Primark uses and right about now Primark uses somewhat
advanced technology and use it on a day-to-day basis whilst analyzing a market trend, their sales,
potential sales etc., However, Primark only update and replace technology if it is needed as they tend
not spend much money on their technology but instead use what they got to help better their brand.
Legal
Primark would need to have legal papers to show that they are a legal business and that they are able to
Have the business run in the country. They would also need to prove that they are insured and all sorts
of other documentation
Environmental
Primark have been trying to be environmentally friendly due to the fact of helping the community by
using paper bags instead of plastic as plastic seems bag for the environment as they are doing this, they
hope to see other businesses follow in their paths because they are trying to help contribute to less
carbon emissions which helps the global atmosphere.
Business support systems
A business support system is a group of business elements used in networking. By doing this this helps
service providers gain customer insight, compile real-time subscriptions, and introduce revenue
generating systems. So, a business that is trying to trade internationally would use this as they would be
able to network in a new country that they are willing to trade with internationally so by doing this this
allows them to make things easier for them as the system supports the business. The advantage to this
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