Environmental Threats

1435 Words Jan 29th, 2018 6 Pages
At the general level, economic factors can always have an impact on the development and evolution of the company. Motor Tire Limited, like all other business entities on the market, is subject to the impact of the global economy, as well as the economic policies of the governments.
With that in mind, Motor Tire Limited will have to adapt to the threat of economic downturns that would, in turn, decrease demand for the products that the company is selling. At the same time, governmental instruments such as the interest rate could also play into the way that the macroeconomic environment changes, posing a potential threat to the company. Socio-economic threats, on a larger scale, could include threats such as the decrease of the volume of workforce, with less potential employees on the market, something that will affect Motor Tire Limited's output.
It is difficult to provide a solution to this threat, but the current economic situation in the world would imply that Motor Tire Limited should adopt a prudent policy and strategic approach. It should likely focus on consolidating its market, and work towards reaching its market share objectives in a way that is not too risky and that doesn't not leave the company overexposed. A process of consolidation also…
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