Essay
M3. Carry out a situational analysis on two countries a selected business may consider trading in
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Btec business. Unit 5 M3. International business
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Voorbeeld van de inhoud
David PaezCarry out a situational analysis on two countries a
selected business may consider trading in
Businesses are now able to trade internationally in several countries that have never
been accessible before. Yet, businesses are affected by the external environment as
well as other international competitors. These factors can have an important impact
on the success or failure of businesses when entering new markets overseas.
Therefore, businesses should be aware of and analyse all the external factors that
are likely to affect their performance before expanding considering entering new
markets.
A great example of these external factors mentioned previously are the political
Factors
M&S must consider this factor as well as many others before expanding. Political
factors refer to the changes in government and government policies. Political factors
can have a huge influence on the operations of M&S. The political influence of the
government of a country or the president of a group of countries, such as the EU or
APEC can have a significant influence on the way in which the country does
business and the model of businesses that are able to trade there on an international
basis.
For example, all businesses operating in the European Union must include directives
and regulations created by the European Union. The political factors have a huge
influence on the regulation of businesses, the economic power of consumers and
other businesses. M&S must comply with all factors within the political environment,
government's policies, etc.
In order to carry out a situational analysis of two countries M&S may consider trading
in, analysis models such as SWOT and PESTLE analysis are commonly used.
These business analysis models are effective tools and techniques that allow
businesses to understand their organisational environment and be more practical
when making important decisions. SWOT analysis is one of the most popular
strategic analysis models as It involves looking at the strengths and weaknesses of
business abilities, and any opportunities and threats the business may face. A
SWOT analysis gives us a better understanding in terms of the internal and external
business environment. In order to analyse whether it would be a good or bad choice
for Marks and Spencer to trade in two different countries, I will make a SWOT
analysis.
1.China:
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