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Analysing the Potential Effect of Brexiton an Organisation

   

Added on  2020-06-04

11 Pages3392 Words68 Views
Marketing within Global Economy

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Analysing the potential effect of Brexiton an organisation Originating Outside of Eu andtrading on EU market..................................................................................................................1TASK 2............................................................................................................................................21. Identifying and explaining theory behind the trade integration..............................................22. Identifying possible models of economic relation between EU and -27 and UK after theBrexit.,.........................................................................................................................................33. Identifying Theoretical opportunities and risks posed by Brexit which Prudential companycould face in different scenarios.................................................................................................54.Designing a strategy which organisation can used to exploit potential opportunities andreduce threats..............................................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8

INTRODUCTIONGlobal marketing is defined as marketing on large scale taking commercial benefit ofinternational operation differences, similarities and opportunities in order to fulfil internationalobjective as well as goals. The study of marketing within global economy is essential as it assistsorganisation in maintaining its competitiveness , to analyse the changing customers needs anddemands. It also supports firm in analysing current market trend, updating themselves with thelatest technology, meeting challenges of developing strong relationship with customers in globalmarket by providing them with good qualities of goods as services and by fulfilling their needs(Kumar, 2015)The report has focus on analysing potential effect of Brexiton which is an organisationthat has been originated outside of EU but operating in European market. Project emphasizes onidentifying threats and benefit faced by Prudential enterprise which is dealing in financial sector.It will also include explanation about various theories behind trade integration. Analysing thepossibilities of economic relationship between UK and EU.TASK 1Analysing the potential effect of Brexiton an organisation Originating Outside of Eu and tradingon EU market.The financial company Such as Prudential organisation has the high potential to executehigh quality financial activities. The leading global financial sector are operating within EU suchas in Luxembourg there are 12 companies, Frankfurt 19, Paris 29 organisation etc. Theresenumber of enterprise represents the most important impact of a withdrawal of United Kingdomfrom EU in context of financial services.The potential United Kingdom withdrawal from EU has great effect on Prudentialcompany that is dealing in Financial sector, this is supported by four scenarios, which extentfrom the United Kingdom losing access to financial market in European Union. It was theapproach of Friendly relation that has allowed the financial companies in United kingdom toenter into European market in order to generate revenue and increase profitability.Analysing the opportunities as well as challenges face by prudential organisation whileoperating in Eu market.As UK economy is based on EU financial service market to generate demand forfinancial services. Some advantages that are gain by Prudential company are they have been1

provided opportunity to provide services for professional investors throughout EU. Theorganisation that are operating in EU market may be able to gain advantage from a possibleEuropean commission decision that include evaluation of credit risk of UK lenders as well ascounterparties. It may also may be benefited by Eu decisions related to compliance with trading,reporting as well as clearing obligations (Salavati & Karami, 2015)The threat that has been faced by organisation include economic crisis in the country,decrease in rate of investment, implication of various new laws related to financial sector. Thepotential risk of closing EU market to third countries entities and goods as well as detrimentalimpact that new rules framed by EU may have great impact on competitiveness of Prudentialfirm (Wright,2016)`The various strategies that Prudential organisation can used to exploit potentialopportunities are market penetration and innovation strategy. Entering into emerging market willassist business entity in minimising the threat of loosing market share. This will alloworganisation to explore more advantages by entering into new market and fostering marketgrowth. The Prudential business entity can conduct joint venture with global companies as thiswill help and support firm in gaining competitive advantage in international market. It will alsoaid enterprise in minimising the impact of macro environmental factors on its businessoperations. Innovation and product development will provide organisation to attract morenumbers of customer and establish good position in international market (Pels, 2015).TASK 21. Identifying and explaining theory behind the trade integration.The theory of trade integration is not traditional. These theories have encouraged manycountries that have been badly impacted by Brexit to support free trade of agreement so that thegoods and services can be easily exchanged. These approaches have focus on production,consumption and trade of products as well as services. Actual changes in structure as well asnature of global trade has been characterised by rise in trade of highly differentiated goods, thatis combined by development in part of intra-industrial trade (Chen & et.al., 2015)European integration is defined as a process of industrial and political economic, legal,cultural integration of various state who are partially or wholly the part of European union.Functionalism as well as Federalism projected the elements of nation state, whereasTransactional have focus on explaining the condition for the stabilisations of nation-state system.2

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