Internalization of Business Essay Example | Topics and Well Written Essays - 1000 words

incorporation of Business - Essay ExamplePresently, the company employs 100 staff to deal with its manufacturing of products such as videodisk players and MP3 players. Although the company is supplying products to the Japanese market, it has failed to expand its communication channel over the last two years. A tot of reasons are attributable to the companys stunted growth including higher wages it has been paying and neglect of research and give awayment staff. Furthermore, the company is struggling to address highly competitive market environment in terms of technology development and mental home. Hence, it is necessary to critically analyse the present situation of the company and to herald the key trends for Elecdyne over the next five years. The 2008 global crisis and recession raised potential challenges to the global parsimoniousness and it impeded the economic growth worldwide. Many economists are of the view that the global pecuniary crisis 2008-09 is the worst mon etary crisis since the Great Depression in 1930s. As Soifer (2010) points out, the crisis led to the collapse of a series of large financial institutions, the bailout of major banks by national governments, and downward movements in stock markets around the world (p.163). This crisis might hasten contributed to the growth decline of the Elecdyne. In modern days, market competitor is very intense and therefore manufactures run for to design innovative models that would effectively dominate the market. Due to this stiff competition, customers get the extensive exposure to elect the best quality and affordable products. Since the Elecdyne lacks an effective R&D team, the company is really striving to develop innovative product models and this worse condition keeps them away from the main stream of the international market. According to Despont (n.d), innovation and continued R&D is very important for an enterprise to survive the intense market competition because the modern custome rs always ask for the best products. However, it seems that the process of urbanisation though networks and partnerships offer projects of opportunities to organisations. It is observed that Elecdyne is soon near to sources of information and hence it can certainly become stronger by preparing itself to face international competition. straight off social networking sites such as facebook and Twitter abide attained worldwide popularity and these social channels forget enable the Elecdyne to understand customer tastes and specifications and thereby to maintain profitable market segments by realizing potential business territories. As Gourmelen (2004) points out, EU union expansion has created potential opportunities for organisations. In addition, Eastern European countries equivalent Romania have cheaper salary margins as compared to UK .Hence, the Elecdyne can effectively offshore its manufacturing activities to such countries where favourable business conditions are prevailin g. In addition, the company may obtain beneficial market environment in rapidly developing economies like India and China where the Elecdyne would get cheaper business inputs. The term STEEP is the acronym for Socio-cultural, Technological, Economic, Environmental, and Political Factors. While analysing the socio-cultural factors, it seems that the company possesses a range of potential challenges. To illustrate Japan, the companys home country, is one of the worlds most known countries for its electronics industry. Therefore cheap and close substitutes to Elecdyne