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Business Organisations and Environments - Dacia Duster

   

Added on  2020-07-23

13 Pages3221 Words120 Views
Business Organisations andEnvironments in a Global Context

Table of ContentsINTRODUCTION...........................................................................................................................1BODY..............................................................................................................................................1SWOT and Porter five forces analysis of Dacia.........................................................................1PESTLE for evaluation of macro environment...........................................................................4CONCLUSIONS..............................................................................................................................8REFERENCES ............................................................................................................................9

INTRODUCTIONThe external as well as internal factors which can influence business activity of anorganisation is covered under business environment. They have significant role in success orfailure of an enterprise. This report is based on Dacia which is a subsidiary company of Renault.They are considered as one of the leading firm in terms of revenue (Srivastava and Jomon,2013). In this file, Canada will be the business environment where they are trying to enter as apart of market expansion. Various analytical approach will also become part of this project. BODYSWOT and Porter five forces analysis of DaciaDuster is a popular name in auto-mobile industry, they hold a position in list of tableleader. Dacia is their Romanian subsidiary which is a successful company of their domesticcountry. They have contribution of around 7.3% in total export of Romania. In terms of revenue,they are considered as the top organisation in their nation. Their manufacturing plant producesmore than 600,000 unit in a year. Their have strong presence in some European countries andthey have significant amount of contribution in their parent company (Slater, Olson andFinnegan, 2011). Following is the SWOT analyses of Dacia:StrengthTheir growth rate is too high if it is compared to other organisations of their industry. Invery short period of time they capture large share of global market where they havedecent presence. They are very strong in their domestic market and they have capacity to influence theeconomy of Romania. They hold major of share in their home industry and they are topcompany in terms of revenue. Cited organisation has a sound distribution system, most of the car manufacturersconsider them as their main competitor because their sales networks is so strong that theydo not gives breathing space to other firms (Siewiorek and et.al., 2012). They are goingto follow same strategy in Canada, first they will select best channel of distribution andthan expand their sales network in all the part of country. 1

Their probability is high and they earn a revenue of around 4.3 billion EUR. Their profitreveal their position in auto-mobile industry. This sector has seen many unfavourableconditions but cited company did not see much fluctuation.WeaknessesEvery enterprise like to invest money in research and development, but Dacia has donehuge amount of investment in this field which was not necessary. In present situationthey are in a problematic situation where they do not know their result of their big betwhich is making a negative impact on their valuation. This move put them in a severefinancial trouble. Their organisational structure is complicated which is the prime reason that their decisionmaking process is lengthy and complicated (Michaelson and et.al., 2014). Manager in thiscompany remain confused for most of the time because they get information after it hasno use. They have high dependence on their domestic market and some European country.Demand of cars in this reason in growing with a decreasing rate which is may put them inserious trouble in forthcoming time. Their performance in key markets is below par, they do not have strong presence in anyof the big European country. OpportunitiesThey can expand their business in emerging markets like Canada which will help them inmaintaining their high growth rate and they can earn huge amount of revenue inunfavourable time. They can also think about strengthening their presence in currentmarket where they are operating. This will provide them stability in hard time. They can acquire companies in emerging economy which will be a good move to enterin new market.Demand of cars is growing at the rate of 4% globally so they have large area which is stillunexploited. ThreatsCost of raw material is increasing continuously, it will be a big challenge for them tomaintain their current revenue because their increased cost of profit may make a negativeimpact on their business (Gulati, Puranam and Tushman, 2012). 2

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