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Sustainability in the Global Economy

BUSM 4306
Strategy and Sustainability in the Global Economy

Abstract
This report discussed has analysed the business environment where ANC group operates and
how the macro and micro factors affects the performance of the company
...
The management of the company should come up with
strategies that will ensure that the firm is able to deal with the threats that are likely to affects its
operation and tap into the opportunities that exist in the market to increase its market share and
competitive position
...
The report has also analysed the company threshold and distinctive
resources using the VIRO analytical model
...
Innovation is an important aspect to the firms that operate in the industry
(Haigh, 2010)
...
This report will analyse ANC Group SWOT analysis, it will also
analyse the environment where the company is operating using PESTLE tool and the ANC
threshold and distinctive resources using the VIRO analytical model
...
These are factors
that are within the control of the firm management and the management has an upper hand how
to manage the factors to ensure that the company achieves the set goals and objectives
...
To deal with such factors the management
should develop strategic plan and strategies that will help manage the effects of the external
factors on the company performance
...

Porter’s 5 Forces

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Sustainability in the Global Economy
Porter’s 5 forces tool is used in explaining the competitive challenges that a company encounter
when operating in the business environment
...
The forces includes the bargaining power of customers, bargaining power of
suppliers, industry rivalry, threats of new substitutes and threats of new entrants
...

Substitutes are the products or services that can be used interchangeably and therefore a
company should ensure that the products or services that are manufactured are unique and are
able to meet the demand of the market
...
They
provide similar products and services as those that ANC group provides customers
...
The management of ANC should take advantage of the

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Sustainability in the Global Economy
development of technology to come up with new products and services
...

Bargaining power of buyers- The bargaining power of customers in any market is high when
they are able to determine the prices of the products and services that are sold in a market
(Goeree, 2008)
...
The bargaining power of buyers is low because customers are
not able to determine the prices of products and services and this does not affect the operations of
ANC
...
ANC group ensures that the services and products that
customers are provided are unique
...
The company use the feedback to improve on the products and services
...
The
bargaining power of suppliers is low because there are so many suppliers that supply raw
material to the IT and communication sector
...
The bargaining power of suppliers is
low and this does not affect the operations of ANC group
...

Entry and exit barriers- UK operates an open market and firms that operates in the IT and
communication industries are able to enter and leave at their own pleasure (Haigh, 2010)
...
Free entry and exit increases the level of competition
and therefore the management of ANC should develop strategies that will manage the high level
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Sustainability in the Global Economy
of competition and ensure that the company is relevant in the market
...

Rivalry- UK IT and communication industry is very competitive and there are several firms that
offer similar products and services to the customers
...
The management of ANC should ensure
that the products and services that are manufactured are unique and are able to meet and surpass
the expectations of the targeted audience
...

Pestel analysis
Pestle analysis is a tool that is used to analyse the environment where a company operates
...
These are the external factors that are outside the
control of the management and therefore the management should come up with strategies to help
manage the impact that the factors may have on its operations
...
Political instability for example Wars affects the operations of
businesses and this in the long run affects the profitability of a company (Hislop, 2007)
...

UK is politically stable and despite the challenges that the country encounters during the
elections period the environment is stable for businesses to go on with their operations
...
Firms will also encounter
challenges for example trade embargoes and this will be a challenge to the development of the
country
...

Economic factors- UK economic environment is affected by increase in inflation rate that
increases the prices of raw materials (Hoffman et al
...
The other factor is the fluctuating
exchange rates that affect the profitability of firms that operates outside the country
...
UK economic environment is stable and this
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Sustainability in the Global Economy
has created an opportunity for firms that operate in the country to achieve their goals and
objectives
...
Low interest rates is an indication that businesses are able to
borrow and use the funds to finance their expansion to the global market
...
The high taxation on IT and communication industry
products and services also affects the performance of firms
...
The social factors that
affects the operations of companies includes the change in demographics for example age,
lifestyle, social class customer taste and preferences and other factors that affects customers
(Jeryl, 2007)
...
This is possible by analysing the operating
environment and understanding customers’ needs and wants
...

Technological factors- UK government supports the development of IT and this has created an
opportunity for firms to advance their operations
...
Businesses are able to use technology to monitor the market and understand the
needs of the market through research and development (Joel and Joonas, 2015)
...
ANC has an opportunity to improve its
operations use technology advancements and also to come with new products and services
...

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Sustainability in the Global Economy
Environmental factors- Environmental policies that have been established by UK government
and other authorities in UK for example Environmental protection Act ensure that the operation
of business does not have an impact on the environment (Keith, 2012)
...
ANC ensures that it operates with the law and the company
does not engage in activities that have a negative impact on the operating environment
...
The company also supports
activities that support environmental protection
...
They are required to operate ethically and within the set laws and regulations
...
Adhering to the above policies and regulations ensures that businesses are able to
operate smoothly and improves the overall performance of businesses
...

SWOT Analysis
Swot analysis is a tool that is used to analyse strengths, weaknesses, opportunities and threats
that affects the operations of a company
...

Strengths –These are the competencies that make an organisation unique compared to the other
organisations that operate in the environment (Keith and Anne, 2012)
...
The company has
massive market coverage and it is able to reach customers using the marketing tactics that have
been put in place
...
The company has a string financial background and this makes it easy
to venture into other markets
...
The
employees are also creative and use technology to come up with new products and services
(Kiiski and Haimmanein, 2014)
...
The
company has a global presence and also provides customers with a wide range of products and
services
...
The company ensures that employees are trained and this improves
their knowledge and skills
...

Figure 3: SWOT analysis

Weaknesses

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Sustainability in the Global Economy
Weaknesses are those factors that affect the performance of the company in the market where it
operates (Kim et al
...
The weaknesses of the company include the dropping revenues
because of BREXIT
...
The reasons that
are cited by employees that have left the company include low pay and inflexible working
environment
...
The high rigid measures and
controls also affect the company
...
It takes long before the management makes
decisions and these delays the opportunity to tap into the opportunities that present themselves in
the market (Kim and Yoon, 2014)
...
This will increase the company customer base and ensure that customers have a wide
range of products and services
...
The company should
invest in rural markets and this will increase the customer base
...
The company should also invest in emerging markets for
example countries in Africa and this will improve the company global presence
...
This will help pool resources together
and improve the overall market share of the market
...
The stiff competitions in the industry affect the operations of the
company
...
BREXIT has also affects the operations of the company in other European countries
...
Free entry and exit in the market increases the number of industry players that
operate in the industry and this has affected the customer base of the company (Luo et al
...

The other factor that is affecting the company is the increase in the substitute products
...

Using VRIO to analyse the organization’s threshold and distinctive resources
The VRIO analysis is a tool that is used to analyse the competencies of a company and identify
the distinctive resources
...
The company use the latest IT and this has improved innovation
...
The
company ensures that products are delivered to customers on time and offers customers with
products that are high quality
...

Rareness- the Company has strategically managed the resources and the resources are rare
compared to those of the rivals
...
The company is able to monitor operations easily in all its branches
...
The company uses the available resources in the production of goods and
services
...
It provides
customers with unique products and services
...
The employees that are working at the
company are competent and work towards achieving the set goals and objectives (Porter, 2011)
...

Recommendations on future international expansion
The company should consider expanding into other emerging markets for example in Africa
countries
...
Before expanding the management of the company
should conduct thoroughly research to identify the needs of the market in the selected market
...
The company should also improve its online presence and should invest
more on social media marketing
...
The company should
improve its competitive position in the market through innovation and this is by using
technology
...
In future the company should train employees
and this will improve skills
...
Research in the global market will ensure that employees understand laws that regulate
the different markets
...
It is important for the management of the company to ensure that users are provide
with an opportunity to manage the stiff competition by analysing the operating environment
using PESTLE and SWOT analysis
...
The management of the
company should work hard to improve its competitiveness
...
47 Issue: 5/6, pp
...
and De la Fuente, J
...
(2008), Limited information and advertising in the U
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personal computer industry,
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Gueguen G
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(2011), The borders of mobile handset ecosystems: Is competition
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Haigh, T
...
and Coe N (2006), Making connections: global production networks, standards, and
embeddedness in the mobile-telecommunications industry, Environment and Planning A
journal, Pion Ltd, London, 38(7): 1205-1227
Hislop, D
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, (2008), Small firms, R&D, technology and innovation in the UK: A literature
review, Technovation, 18(1), 39-55
Jeryl M
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and Joonas, R
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C (2012) "The influence of print advertisement organization on odd‐ending price image
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Kiiski, A
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(2014), Mobile Virtual Network Operators: Case Finland,
ITS 15th Biennial Conference, Berlin, Germany
Kim, H
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(2014), Mobile handset subsidy policy in Korea:
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and Hwang, P
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63-78
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