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Business Organisations and Environments in a Global Context INTRODUCTION 3

   

Added on  2020-11-12

13 Pages3482 Words327 Views
Business Organisations andEnvironments in a GlobalContext

Table of ContentsINTRODUCTION...........................................................................................................................31. Background information of company..........................................................................................32. Background of Business environment.........................................................................................53. Analysis of Business opportunities..............................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12

INTRODUCTION Business organisations and environment brings resources and capitalize them in the bestpossible manner for distribution so that maximum profit could be earned and satisfaction ofcustomers could be easily achieved. Organisation is only recognized if it fulfils itself bygranting a suitable service or making a product. There should be regularity in dealings ofproducts. While doing business, planning, networking, dedicated team, appropriate tools andtechnique should be implemented. In this report there is discussion on Philips Electronics of UKwhich wants to expand in Portugal. Its business environment is affected by various externalforces like political, social, legal, economic, environmental and technological factors. It isinfluenced by economic conditions, change in interest rates, performance of country, cash,debts, business and operational risks (Yunna and Yisheng 2014). Thus, in this report there iscomplete illustration on foreign direct investment, size and structure of organisation andanalysis of external forces on business environment. Philips can capture by exploiting new market of Healthcare. Porter's five forces andPESTLE analysis are also undertaken so that firm can identify its upcoming threats andopportunities that could retain in the market. Specific operational aspects have also beenconsidered while expanding in Portugal. Interest in Portugal has raised significantly afteremerging from recession globally (Indiatsy and et.al., 2014). This would attract various smallscale and large companies to invest in Portugal and expand worldwide.1. Background information of companyPhilips is a leading Electronic company that focuses customer satisfaction and aims atbetter outcomes across the health time from prevention and healthy living to treatment and homecare. It is leader in manufacturing electronic equipments related to health. It has 73,000employees with services and sales centres expanded in more than 100 countries globally(Chiang, Chen and Ho, 2016). It consists of a factory, offices, goods warehouse and research &development warehouse and a large field base of Health system.Structure of the companyStructure of company is organisational which can be described as hierarchical in whichjob, function is regularly reported to organisation. This structure allows development and growth

of organisational environment. Major aspects for operating successfully are recruitment ofqualified employees and their retention. Employees in Philips have job security and promotionalopportunities that minimizes recruitment costs (Kuimov, 2017). Its organisational structurewould definitely grow and change if it would expand in Portugal. Structure will be reshaped.Nature of the companyPhilips remains curious in building contacts between Netherland and other parts of theworld. It always promotes scientific cooperation. It introduces meaningful innovation thatimproves people's health. It has its own seal, name and separate legal entity. International Operations: Foreign Direct Investment in PortugalForeign Direct investment in Portugal ended at €31.9 million in 2008 and is a servicebased economy. It has one of the lowest operational Cost in Western Europe and offers flexibleincentive packages to investors (Kurt, and et.al.,2018). Philips can expand in Portugal because ofthe following benefits:2.Portugal is innovative and has friendly economic environment. Its policies are investorfriendly.3.Government as well as various other agencies support in establishing any neworganisation in Portugal in 49 days. This is a positive factor for Philips to grow inPortugal.4.Special incentives like companies which provides permanent jobs obtains 50% on socialsecurity payments are offered by Portuguese government.Financial Performance of the companySales of Philips in 2017 was 17,780 M Euro which has increased as compared to 2016which was 17,422 M Euro (Zalengera and et.al., 2014). Its net income attributable toshareholders in 2017 was 1.75 M EUR.

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