Business Strategic Management Assignment
11 Pages2055 Words50 Views
Added on 2020-04-07
Business Strategic Management Assignment
Added on 2020-04-07
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Running Head: Business Environment 1Business Environment and Strategic Management
Business Environment 2ContentsIntroduction......................................................................................................................................3PESTEL analysis.............................................................................................................................3Incentives to enter in Rwanda..........................................................................................................5Current foreign investment in Rwanda............................................................................................5ARTS’ motivation to enter in Rwanda............................................................................................6Five forces analysis of ARTS..........................................................................................................7Product line of ARTS and Positivo BGH........................................................................................8Rwanda domestic market versus sale to a Western market.............................................................9Recommendations............................................................................................................................9References......................................................................................................................................11List of table Table 1: Growth in FDI...................................................................................................................6
Business Environment 3Introduction Business Strategy is helpful in planning the business of an organization for the long-termbasis. Strategic management is concerned with the various business activities i.e. raising fund forproducing products and services and getting profit in the business. This report identifies thefamous technology company Alpha Response Technology Solutions. This is TaiwaneseTechnology Company and seeking to expand the business in the Rwandan Special EconomicZone. Before entering in new market, it is important to understand the environment of themarket. By the analysis, this report provides the recommendations to the company to expand thebusiness in the new market (Cateora, 2008).PESTEL analysisCompany is going to expand the business in Rwandan and the market of the country canbe analyzed by the PESTEL analysis. The PESTEL analysis of the country Rwandan is describedbelow:Political Strong and favorable policy and legalenvironment,Politically stable country,Legal system supports government,Citizen contributes to the governmentdecision making process by e-participation and e-parliamentarychannels, andTax regulations are favorable for FDIEconomic Low disposable income of Rwandanpopulation,Exchange rate is low and attractive forthe foreign investors, andFinancial system of country isunderdeveloped and access to credit ispoor
Business Environment 4Social High level of literacy in country,Population is drawn from the ethnic andlinguistic group,People use principal language,Rwanda is in the African Great Lakesregion and highly eminent, andClimate of the country is pleasant withtwo rainy seasons and two dry seasonseach year (Twagiramungu, 2006).Technological Developing country and have growingtechnology gradually,People do not have much technologicalskills,Power is only in the government of thecountry,Low average of innovation andcreativity in the country, andLimited access of foreign and localtechnology by local organizationsEcological Country is covered with the diverseecosystem i.e. natural ecosystem,Forested area and agro-ecosystem,Rural settlement of Rwanda has beenscattered by unplanned settlement,Agriculture is the most crucial sectorfor the country’s economy, andVariations in the temperature rangesand rainfall are creating someirregularities (United Nations Rwanda,2017).Legal Open liberalized economy for theeconomic growth,
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