Business Process Management and Sustainable Innovation

This assignment delves into various topics related to business process management, sustainable innovation, and entrepreneurship. It covers a wide range of subjects including economic analysis of law, business models for sustainability, research methods for business, consistent set of interfaces derived from a business object model, business transformation management methodology, Microsoft Excel data analysis and business modeling, and more. The assignment also includes online resources such as Sweden's Business Climate, Sweden PESTEL Analysis Market Research Report, and Swedish Law: Legal System.

Business Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
BACKGROUND OF PANDORA...................................................................................................1
BACKGROUND OF SWEDEN'S BUSINESS ENVIRONMENT................................................3
ANALYSIS OF THE BUSINESS SCENARIO..............................................................................5
PESTLE analytical approach......................................................................................................5
CONCLUSION AND RECOMMENDATIONS............................................................................7
REFERENCES................................................................................................................................8
APPENDICES.................................................................................................................................9

INTRODUCTION
Business analysis can be defined as a practice which enables the change within
organisational context. This can be done through shaping needs and recommending all solutions
which delivers number of values to stakeholders. In order to conduct a proper business analysis,
it is needed for an organisation to set number of tasks along with techniques that are going to be
used so that to draw favourable outcomes.
Present business analytical report is based on Pandora which is a jewellery manufacturer
that has explored Foreign Direct Investment (FDI) related opportunity in Sweden (Forsgren and
Johanson, 2014). With the help of investigation, manager of Pandora Jewellery has faced number
of issues while expanding the business in targeted country (Sweden). This country is having
different legal, cultural and economical structure/conditions from existing nation where Pandora
is doing its business. Thus, differences among these factors are some major problems which
created barrier for this company. Another issue which was faced by the country while venturing
in Sweden i.e. Brexit. This report will show different company's and country's background.
Lastly, it will also put light on Porter's 5 forces analytical approach which will help manager of
the company in taking right initiative while doing business expansion.
BACKGROUND OF PANDORA
Pandora a jewellery manufacturing and retailing company was found in 1982 but legally
ventured in United Kingdom's market in the year of 2008. Company was founded by Per
Enevoldsen with keeping an aim of becoming world's biggest manufacturer in jewellery sector.
It's headquarter is at Copenhagen, Denmark and serving its products and services worldwide.
Pandora is having its production site in Thailand and sells its jewellery based items in around
100 countries (6 continents) with keeping 7,700 selling points in all over world. Apart from the
founder (Per Enevoldsen), company is having a proper and systematic ownership structure where
Anders Colding Friis is the CEO and Peder Tuborgh is Chairman of Pandora which leads
company to go through all the risks and helps in taking effective decisions related to business
expansion (The Pandora Story, 2013).
Along with this, company is also having 22,300 hard working staff members. Away with
this, it has been found that Pandora is also publicly listed on NASDAQ OMX Copenhagen Stock
Exchange in Denmark. According to the financial reports of Pandora (2016), revenue which was
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generated approximately was in the amount of €2.71 Billion. Apart from this, net income was
around €0.81 Billion. Organisation has also been real strong on financial basis as Pandora is
doing business at international level approximately 100 countries. Some of Pandora's products
like bracelets, rings, earrings, necklaces and pendants which has allowed women to express their
personal style. Manufacturing ornaments with high technology and quality has helped company
to provide customers with reasonable rated jewellery products. Qatar, United States, Canada,
Bulgaria, China, Australia, Bahamas, Bermuda, Mexico, Panama are some of nations in which
currently Pandora has expanded where its operations are growing in a rapid manner (The
Pandora Story, 2013).
This aid Pandora in grabbing good position at international market. It is impacting
positively as well on firm's reputation on a regular basis. Using right strategy or developing plan
may aid Pandora in expanding its business in Sweden with an ease. Failure into this, may lead
organisation to face number issues like raise in expenses, decrease in reputation, impact on
goodwill and many more (Greasley, 2017). Recently, company explored into FDI and have
found an opportunity to expand its business. Nation which has been chosen by Pandora is
Sweden, a country which is coming under European Union. Nation which can be considered as a
good place for expansion for a jewellery manufacturer and retailer because of its growing
conditions of economy. Pandora has kept its focus over number of areas like producing jewellery
with low costs which may directly grab attention of targeted consumers at Sweden.
On the other hand, it has also been analysed that at the time of business expansion,
Pandora may go through number of issues because Sweden's culture, governmental policies,
legal structure and economical conditions differs from both Denmark and United Kingdom.
Another major problem which can be faced by Pandora while expanding its business i.e. impact
of Brexit on business environment of both EU countries and UK which got evicted from
European Union (Jenkins and Williamson, 2015). These are some of the factors that may affect
strategies and plans of company at the time of business expansion. On the other hand, it is also
required for Pandora to keep its focus over change in course, because today's business world is
filled with uncertainties. Rapid changing situations under technological and legal factors of
external environment can be considered as something which might put Pandora in deep trouble
while venturing in Sweden. Thus, it is pretty much needed for this company to focus over these
elements at time of launching products and services in this nation.
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(Source: Monthly sales volume of watches and jewelry in Great Britain from January 2014 to
February 2018, as an index number of sales per week, 2018)
From above graph, sales of Jewellery in Britain has increased in past 4 years. Thus, it can
be considered as something that may help company in Pandora in grabbing good position in
short period of time in Sweden's business market.
BACKGROUND OF SWEDEN'S BUSINESS ENVIRONMENT
Sweden is a Scandinavian country of European Continent and is a part of EU from
starting of 1995 year. Capital of this country is Stockholm. Swedish Krona is the official
currency of this nation and it is also committed with Euro currency as well only after fulfilling
necessary policies and conditions. Sweden a parliamentary democratic nation whose government
regularly exercises executive power. In 2016, Sweden's economy kept its focus over few
important sectors like public administration, defence, education, human health and social work
activities (21.5 %), industry (19.9%) and wholesale and retail trade, transport, accommodation
and food services (17.9%). On the other hand, in terms of export Sweden's trade account has
carried 59% on Intra-EU, 11% for Germany and 7% to United States (Müller and et. al., 2016)
Apart from this, considering imports, approximately 71% comes through other nations that are
connected under European Union where Germany, Netherlands and Denmark are some major
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Illustration 1: Monthly sales volume of watches and jewelry in Great Britain from January
2014 to February 2018, as an index number of sales per week

countries from which Sweden mostly imports goods and services. From outside, around 8%
which comes from Norway and approximately 6% with China (Sweden’s Business Climate,
2018).
On the other hand, Sweden which comes under European continent and comes on 3rd
position who is having great number of population. On the other hand, while expanding a
business it is required for the companies like Pandora to look over number of factors like
Economy, Culture and Political, Legal and Financial systems as these are some major elements
which may impact upon business or doing operations in a systematic way (Posner, 2014).. Slight
fluctuation into these factors of Sweden may lead foreign business organisations that have aimed
to expand may get into deep trouble (Sweden, 2018). As Pandora is expanding its business in
Sweden. In order to understand business environment of Sweden, a detailed discussion over
different factors are done beneath:
Economy: It has been analysed that trade plays crucial role for Sweden’s economy; the
combined value of exports and imports equals 84 percent of GDP. Away from this, the average
applied tariff rate in Sweden is approximately 1.6 percent and Non tariff barriers delays some
trade process as well. Away with this, government policies do not significantly interfere with
foreign investment. Thus, using Foreign Direct investment (FDI) might help Pandora while
expanding its business because there will be no involvement of parliament of Sweden (Sweden,
2018).
Culture: Sweden is having open culture but there are many issues that are needed for
foreign business organisation to expand its business, Swedish business culture is characterised by
communication, business meeting etiquette, internship and student placements, cost of living,
work-life-balance and social media guide. Thus, it is much required for every single business
firm to keep their focus over these factors related to culture at the time of business expansion.
Political: Swedish constitution which was made by parliament of this Sweden is based
over 4 major legal laws and these are: Instrument of government, Freedom of expression,
Freedom of Press Act and lastly, Act of succession. Thus, these are the rules which needs to be
followed by Pandora while entering into Sweden.
Legal: In legal terms, Sweden is having around 3 levels of governments: national,
regional and local. Riksdag which is a unicameral parliament majorly develops national laws for
this country. Around 349 legislators takes decision over constitutional laws and legislations of
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Sweden. Apart from this, it has been analysed that Sweden mainly follows civil laws that are
common to Europe's rules, legislations and regulations (Hansen, 2016).
Financial systems: Sweden's financial system is said to be large in nature with most
important international banks like Barclays, Bank of America, Citigroup, Deutsche Bank and
HSBC and many more. Apart from this, insurance sector of Sweden where life insurance
companies like If P&C Insurance, Folksam, Länsförsäkringar, Skandia, Vardia Insurance Group
and many more that have carried heavy impact on GDP of this country almost 88%. On the other
hand, capital market of Sweden is also well developed where foreign investors holds around a
quarter of Swedish bonds which can be considered and equivalent up to 20% of Gross domestic
product (Sweden, 2018).
ANALYSIS OF THE BUSINESS SCENARIO
PESTLE analytical approach
Political : A well maintained parliamentary democratic country where general elections
held in every 4 years. It has been analysed that approximately 7 million swedes are enrolled or
entitled to give vote to different political parties under Swedish Parliament (Riksdag). Apart
from this, constitution of Sweden shows relationship between both decision making and power
of executives. While entering into Sweden's business market, it will be required for Pandora to
go through all the policies which has been made by Riksdag. As country has carried an open
market thus, it can be said that considering FDI may aid Pandora in doing business with good
economy related values and can carry a good position at marketplace of Sweden in short period
of time (Sweden PESTEL Analysis Market Research Report, 2017).
Economical : In terms of economy of Sweden, if it is broken-down than it can be
analysed that EU has spent € 1.712 billion in total in the year of 2016. Apart from this, nations of
European Union has also spent on Swedish gross national income (GNI) with 0.36 % in total.
On the other hand, financial sector of Sweden regained much of its stability after Brexit and this
has happened because of strong economical conditions. After recession that took place in 2007,
Sweden has improved in past few years, and developed smooth banking regulations that are
much sensible. Thus, there might be a possibility for Pandora to gain a good position because of
involvement of other nations of EU. Here, support can be given by other European Union's
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nations when slight decrease in economical growth of Sweden takes place. Therefore, doing
business in Sweden by Pandora may lead to raise there profit ratios (Sweden, 2018).
Social : There are some social and cultural taboos that are present in business
environment of Sweden like, Swedes avoid arguing with visitors, racist related jokes and
arguments are less tolerated, proud of society in which they are living and many more. Thus, at
the time of business expansion it will be required for Pandora to keep its focus over these
elements. Because discipline, business ethics and true values are some of elements that society of
Sweden follows. Here, entering into market of Sweden, may create problems for Pandora as
Denmark and United Kingdom's social state is quite different from this nation. Therefore, it will
be necessary for this company to keep its focus over all the values which has been followed by
Swedes before entering the market (Rosca, Arnold and Bendul, 2017).
Technological : Sweden is being ranked as leading nation of EU under innovation.
Collaboration in between research institutes and public/private sector has been considered as a
crucial factor which has helped this country in becoming a leader in innovative section. Research
and development department of all the organisation's has been linked with innovation. Sweden
comes on the 3rd position from all the EU countries who majorly invests in innovation. Here,
around 3.3% of GDP in majorly being spent on R&D in the year of 2015 (Inventing tomorrow’s
world, 2018). Pandora which is a jewellery firm has kept their focus over innovation only in past
few years. Thus, expanding its business in Sweden will be highly beneficial and possibilities are
there that parliament of this country might also help in bringing innovation among products as
they have kept their focus as well over innovative sector.
Legal : Riksdag which is a governing body of Sweden which has made rules and
regulations that are much influenced with Germany's traditions. This might create problem for
Pandora as in past company was following laws of United Kingdom which differs from laws of
European countries. After Brexit, many rules and regulations has got changed in United
Kingdom. Thus, these alterations among policies of both the nations can affect business of
Pandora (Swedish law: Legal system, 2015).
Environmental : Sweden's environment produces less carbon dioxide which can be
considered as something that may not affect ornaments much. Apart from this, government has
also made number of policies in order keep environment safe like good quality ground water,
balanced marine and non – toxic environment and many more. Therefore, this country can be
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highly reasonable for business expansion of Pandora which will help company in sustaining at
Sweden's marketplace for a longer period of time.
On the other hand. it has also been analysed that Sweden's business market is going
through number of problems like labour related issues, small percentage of specialised
workforce, high taxes, less percentage of women across (23 %) are on managerial positions. But,
market conditions for Pandora is highly favourable which will help its business in growing in
much effective ways (Scarborough, 2016).
Henceforth, it is required for manager of the company to analyse these factors and take
right decisions in order to understand the whole concept of doing business in Sweden. Business
market of this country has been really very strong in past decades which directly attracted ample
number of foreign companies to do business at a rapid growing platform. Therefore, expanding
business in Sweden will improve profitability and productivity of Pandora.
CONCLUSION AND RECOMMENDATIONS
From above comprehended report, it has been concluded that business analysis plays a
crucial role for every single business organisation at the time of expanding its business. After
analysing the whole scenario of Sweden it can be said that it will be an opportunity for Pandora
to launch its products in Sweden because it is one of the fasted growing economy based country.
On the other hand, considering all the issues which has been faced by company like impact of
Brexit, legal, financial, cultural and developing right plans may aid Pandora in entering at market
of Sweden with ease. FDI approach which has been used by this company to enter the market of
Sweden where government do not interfere can be really very helpful for the company at the
time of business expansion. Along with this, it has been recommended that adopting culture of
Sweden and promoting Jewellery of Pandora over different media channels might be helpful for
company in gaining good reputation and build up brand image in short period of time.
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REFERENCES
Books and Journals
Forsgren, M. and Johanson, J., 2014. Managing networks in international business. Routledge.
Greasley, A., 2017.Simulation modelling for business. Routledge.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Müller, O. and et. al., 2016. Towards a typology of business process management professionals:
identifying patterns of competences through latent semantic analysis. Enterprise
Information Systems.10(1). pp.50-80.
Posner, R. A., 2014.Economic analysis of law. Wolters Kluwer Law & Business.
Rosca, E., Arnold, M. and Bendul, J. C., 2017. Business models for sustainable innovation–an
empirical analysis of frugal products and services.Journal of Cleaner Production.162.
pp.S133-S145.
Scarborough, N.M. 2016.Essentials of entrepreneurship and small business management.
Pearson.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2016. Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment.29(3). pp.264-289.
Sekaran, U. and Bougie, R., 2016 .Research methods for business: A skill building approach.
John Wiley & Sons.
Seubert, M. and et. al., 2014 Consistent set of interfaces derived from a business object model.
U.S. Patent 8,924,269.
Uhl, A. and Gollenia, L. A. eds., 2016.Business transformation management methodology.
Routledge.
Winston, W., 2016.Microsoft Excel data analysis and business modeling. Microsoft press.
Online
Sweden’s Business Climate. 2018. [Online]. Available through:
<http://www.enterprisesurveys.org/reports/sweden-report>.
Sweden PESTEL Analysis Market Research Report. 2017. [Online]. Available through:
<https://www.marketresearchreports.com/market-research-reports-inc/sweden-pestel-
analysis-market-research-report>.
Sweden. 2018. [Online]. Available through:
<https://europa.eu/european-union/about-eu/countries/member-countries/sweden_en>.
Sweden. 2018. [Online]. Available through: <https://www.heritage.org/index/country/sweden>.
Swedish law: Legal system. 2015. [Online]. Available through: <https://ox.libguides.com/c.php?
g=423099&p=2889043>.
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Inventing tomorrow’s world. 2018. [Online]. Available through:
<http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards_en>.
Monthly sales volume of watches and jewelry in Great Britain from January 2014 to February
2018, as an index number of sales per week. 2018. [Online]. Available through:
<http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards_en>.
The Pandora Story. 2013. [Online]. Available through:
<https://pandoragroup.com/Media/Pandora_In_Brief/the-pandora-story>.
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APPENDICES
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