Mann Paryo

The globalization provides opportunities to international business operators are as follows:
Political Liberalization  The political ideology of any nation removes the barrier to conduct trade activities. There is a friendly environment for the investors to conduct the business which is the major reason of opportunity for globalization.
Technology The technology is innovated and novelties found every day. It is creating the opportunity to globalize as the innovation has made able to operate the business in any corner of the world.
Cost  The opportunity of globalization is the cost factor. In order to gain economies of scale i.e. efficiency in labor, the businesses are operating all around the world.
Market  Due to the need for expansion of the market to operate in a competitive manner is another opportunity to globalize the business.
Competition  The competitive intensity is raising due to which business investors are more influenced to operate globally to grab the opportunity.

Howev…

Internal Factor Analysis Summary 1. Internal factor includes resources and function of an organization such as Marketing, finance, human resource, production/operation, research and development, management information system.

2. The internal factor can be controlled and influenced.

3. Internal factor looks at its own strength and weakness and then look at external factors by identifying opportunities and threats.

4. Internal factor analysis helps to establish long-term objectives, generate, evaluate, and select strategies i.e. strategy formulation.
Importance of Internal Factor Analysis 1. Internal factor analysis helps to analyze its resources and functional strengths and weaknesses.

2. Internal factor analysis helps to understand the factors and work upon those factors so as to gain competitive advantage, growth, profitability in the firm.

3. Internal factor analysis helps to internally assess the organization and formulate, implement, and evaluate the strategic plan and cross-func…

Strategic groups are the group of similar firms/business within an industry having the same business models and strategies. For example, the restaurant industry having fast food, fine dining, etc.

1. Strategic groups help to identify the direct competitors and competitive environment.

2. Likely or possibility of one strategic group moving to another group within an industry.

3. Identify strategic problems.

4. Strategic groups help in identifying opportunities.

Therefore, Strategic groups help to understand the opportunities, strategic problems, possibility of moving from one group to another, and identify its direct competitors.

Strategic groups characteristics can also be a way to understand its effectiveness.

1. Market Segments

2. Product/Services Diversity

3. Product/Service Quality

4. Pricing

5. Distribution Channels

6. Geographical Expansion

Mission Statement is important because it explains the existence, objectives, and goals of our business. A mission statement is crucial for any organization so as to understand its business purpose very clearly and well identified so as to achieve the advantage, profitability, and growth.
Nine Components of a Mission Statement 1. Customers- Who are the firm's customers? Analyzing the customer and serving them.

2. Market- Size of a market, Segmentation of markets.

3. Technology- Do the firm have the advancement in technology? Is the firm using innovative technology?

4. Philosophy- Firm's policies, beliefs, attitudes, values.

5. Concern for growth and profitability- Is the firm has a chance to grow and earn a profit? How growth and profitability are to be achieved?

6. Concern for the public image- Is the firm concerned for social responsibility?

7. Concern for employees- Is the firm takes employees as their valuable asset to the firm?

8. Geography- Firm's geographical expan…

External Environmental Analysis (EEA) is the analysis of the external environment which helps in analyzing the trends and activities of the industry in the marketplace. The processes of EEA are:
1. Scanning
2. Monitoring
3. Forecasting
4. Accessing
Micro and Macro factors in the Business Micro factors look at the specificity and macro factors look at the overall economy/business. Micro factors can be influenced because it is an assessment of the specific firm, and Macro factors are less influenced because it is external factors which are difficult to predict and understand. Therefore, micro factors are the factors of the specific firm such as the functional department, policies, procedures, laws, etc which can be influenced and changed when necessary. But, macro factors are external factors/segments such as demographics, political, legal, socio-cultural, technology, environment, legal issues that can be difficult to predict and influence.
The typical External Environmental AnalysisSc…