Macro Pest Analysis: Çilek

Within recent years, the furniture market has seen both an increase in foreign imports and the startup of customized manufacturers, as well as a systematic closure of other smaller furniture manufacturers unable to compete in the evolving open market. Based on government’s decision to continue to liberalize the

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

Today’s world is facing strong influence of globalization in each and every aspect of our lives. It is expressed through: free trade agreements, foreign direct investments, international trade, facilitated movement of labour, capital and resources, as well as a strong competition that eventually gives more power to customers. In addition, it resulted in the economic boom of the developing countries, with substantial dominance of China that mainly benefit from their massive labour force, its low cost and high comparative efficiency. This phenomenon has impacted all industries around the world. In particular, furniture production is going through a trend of moving to China that “in 2002

Furniture is considered in economic terms as an ‘elastic commodity’ and is very sensitive to economic changes. It is an export oriented industry with 53% of production being shipped outside Canada and 95% of exports going to the US. Canada is the 5th largest exporter of furniture in the world operating at various

The organization’s environment describes the atmosphere inside and outside of the organization and how the entity responds to the conditions. The company should understand how these forces drive the organization and in which direction. With this knowledge, the organization will be able to plan and make adjustments as necessary.

Which Countries are involved in this case? Describe the diplomatic relations between those countries? Are there any trade agreements, policies, sanctions, political circumstances, or diplomatic issues which would impact management’s decision to enter the market?

The Canadian furniture industry is 97% Canadian owned and consists mainly of small or medium-sized family-owned and -operated firms. It is an important contributor to the Canadian economy, employing more than 100 000 people in total across all levels.

External Environment: The main external elements need to be observed and established in and around the organization which will affect the organization.

It is defined as all the forces or conditions that are available within an environment that affects an organization and business. It is also known as controllable factors because business can control them. The internal environment deals with the management of resources like human resources, physical resources, technology, monetary resources and others that constitute the organization in order to implement or execute a strategy. Internal environment also includes culture and other intangible aspects like teamwork, coordination, efficiency level of employees, employee’s salaries and monitoring costs. The strategy for competition should also be in sync with the internal resources especially the internal environment.

In this term of our discussion we’re talking about business environment. It’s like an overview of the whole business environment. Simply environment of a business means the external forces including the business decisions. They can be forces of economic, social, political and technological factors.

In the year 2010, Egypt reached its apogee of the civil unrest. The civil unrest, which not only affected the people, affected many business firms to the extent where several companies closed down. Moreover, coming from an Egyptian family that owns businesses in Egypt, an analysis of how the civil unrest affected each business could demonstrate how those businesses were directly affected.

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are:

The problem identified in the report is Chen, the president of Levendary China, has completely changed the core design of the company to give local look and feel. Even the Levendary’s classic wooden framed upholstered chairs are replaced with an alternative of local made plastic chairs by Chen. The change in the taste preferences by the Chinese customers is another problem which made Chen to change the core values of Levendary according to the local demand. The Head-Quarters of Levendary also faced problem with Chen’s stubborn attitude and his reluctance for the change in operations in China. Foster’s leadership is another issue to be considered due to lack of international management experience. The shares of Levendary trading at discount compared to other restaurant stocks and Levendary China clearly states in its income statement: a loss of 143620$ in the year 2010. Inconsistent accounting is another drawback to be considered in the operations of Levendary café in China.

After the collapse of Soviet Union, Kyrgyzstan’s economics was slowdown since they was moving to market-based economy. Sergei and his wife lost their job and moved to capital. They borrowed money from family and friends starting business outside of the capital. After long period of time doing business over China, India, and Turkey, they did a better job and had enough capital for a largest department store in town. Their business was getting better and they built their own sewing factory of high quality apparel. The clients are wholesale traders who sold their goods to retailers in Kazakhstan and Russia. They

The internship would not have been possible without the support and guidance of many people.