Business environment

Business Environmental Analysis

Part III

4. Give your team’s recommendation on how to respond to the opportunities and threats (no response may be valid if you can justify it)

In section entails external forces that affect the operations of the company by providing opportunities and threats. Opportunities are positive chances created by external factors that a company can utilize and earn a competitive advantage while threats are negative conditions created by external forces that can affect the companies operation. For Nike Company, there are several environmental forces that will affect the company either positively or negatively. In order to analyze the macro-environmental factors that will affect Nike Company, PESTEL analysis will be used; thus the factors to be analyzed will be; political factors, economic factors, social factors, technological factors, environmental factors, legal factors and ethical factors (Okoye 2017).

9.Make a go/no go decision if the firm should pursue this international opportunity and why

Political factors involves the degree to which a government intervenes in the economy and this can include; government policies, political stability or instability in foreign markets, tax policy, foreign trade policy environmental laws, labor laws and trade restrictions among others. Secondly, economic Factors are factors have a significant impact on how a firm does business and also determines the profitability and includes; economic growth, exchange rates, inflation and interest rates among others. Thirdly are social factors which involve beliefs and attitudes of population and includes population growth, age distribution, career attitudes among others. The fourth aspect is Technological factors which affect marketing and management by deriving new ways of production and distribution of goods and services and also new ways of accessing and communicating with target markets. Environmental factors are also important due to factors such as carbon footprint targets set by governments, scarcity of raw materials and operating business as an ethical and Sustainale Company. Also, there are legal issues which include advertising standards, product labeling and product safety, consumes rights and laws among others. Finally, ethical factors which involves issues such as fair trade, slavery acts and child labor among others

Opportunities

· Opportunities that exist for Nice Company includes;

· Political stability in most countries they perat in

· Lack of trade restrictions

· Many people believes that they are among the top in the market hence people have positive attitude towards their products

· Many football cubs are continuously being formed hence providing continuous market expansion.

· Many young people are currently opting to shift their careers to sports.

· Increased advancement in digital marketing technologies

· Advancement in online purchases

Threats

· Political instability in other countries

· Broad economic uncertainty.

· High taxes and interest rates

· Continued inflation

· Increased competition

· Continued fraud in online business

Advancement in technology will enhance marketing activities which can effectively be done virtually through social media, websites and other digital marketing platforms ina cost-effective manner. Also, political stability in most countries will enhance business operations and business safety.

10. Conduct any additional research to fill gaps and missing information from your prior analyses or as instructed via formal and informal feedback

Increased competition in the markets will negatively affect the company’s operations and market share hence there is need to orc on ways to outcompete other competitors. Also, continued inflation is making business unpredictable and sourcing of inputs increasingly getting expensive and additionally making people shift their preferences. It is therefore recommended that the company should appropriately address these threats in order to be viable and also avoid losing their share of market to the competitors. In order to achieve this company should fully utilize their opportunities to overcome threats.

The company should therefore pursue this opportunity since the business environment still has more opportunities that can be utilized well mace the company be the best in the market

However, it is important to conduct continuous market research and analysis on consumer trends and competitors behavior and adjust accordingly.

References

Onyshchenko, S., Maslii, O., & Ivanyuk, B. (2019, October). The Impact of External Threats to the Economic Security of the Business. In 2019 7th International Conference on Modeling, Development and Strategic Management of Economic System (MDSMES 2019) (pp. 156-160). Atlantis Press.

Okoye, S. I. (2017). Strategies to minimize the effects of information security threats on business performance.