Economic and Financial Management docx

Running head: ECONOMIC AND FINANCIAL MANAGEMENT
Economic and Financial Management
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ECONOMIC AND FINANCIAL MANAGEMENT
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Executive Summary
The objective of the paper is to identify the micro and macro-economic factors that has led the
company to the failure. The concerned study has been developed on the base of Blockbuster LLC
which is an American video game service provider. The company’s deteriorating market share in
comparison with the rivalry companies reflects the company’s devastating failure in the UK
market. As per the data, the company’s market cap has faced a recorded fall due to
overwhelming customer demand for other online streaming business, like, Netflix and Loveflim.
This widest difference in market share reflects the company’s deteriorating customer base in the
television sector. The continuous ignorance for the rival products has disrupted the company’s
technical expertise in the UK market. Over the last two decades, the company has been started
experiencing severe technological changes in the television industry. The company’s falling
brand power refers to the considerable loss of consumer strength in the UK television market.
Further, the management is not intended to change the pattern of the television shows to augment
the market demand. The comparative higher market price has deteriorated the market demand.
The customer market is one of the important dimensions to determine the demand for home
video rentals and video streaming services. From the demand perspective, the company holds
string customer base owing to its standard quality of the manufacturing products and services.
This has developed a reliable customer base in the economy. The customer market is comprised
of consumers, business partners and resellers.

ECONOMIC AND FINANCIAL MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Economic Impacts on Organization.................................................................................................3
Macro-Economic Analysis (PESTLE).......................................................................................3
Micro-Economic Analysis (SWOT)............................................................................................4
Critical analysis of economic factors on Blockbuster...............................................................4
Impacts of Micro and Macro Economic factors on Blockbuster.....................................................5
Background.................................................................................................................................5
Micro Economic Analysis of Blockbuster..................................................................................6
Conclusions......................................................................................................................................9
Reference list.................................................................................................................................10

ECONOMIC AND FINANCIAL MANAGEMENT
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Introduction
The paper has been developed with the aim of analyzing the role of economic factors on
the performance of an international organization. Different types of analysis have been explained
to provide insight on the external and internal factors for an organization. PESTLE, SWOT and
PORTERS FIVE FORCE have been included in this study to examine how economic factors
influence the decision making process of an organization. A PESTLE analysis discusses about
the sociological, political, legal, environmental and technical factors. Meanwhile, the strength,
opportunity and drawback get acknowledged under the SWOT analysis. PORTERS FIVE
FORCE examines the intensity of the competitiveness of the market for an international
company (Sedig et al., 2014). Furthermore, the paper has attained to explore how an internal
company, like, Blockbuter has suffered from business loss even if holding a strong market
position in the global television sector. The company was used to get considered as a leading
video streaming service in the UK market. The product and services range from home video
rentals including VHS, DVD, Blu-ray to video streaming services.
Economic Impacts on Organization
Macro-Economic Analysis (PESTLE)
PESTLE analysis is used to determine the cost effective approach for the establishment
of a new business. This attains to inspect the possible external threats for the organizational
growth. The comparative advantage is the determining factor under the PESTLE analysis. Proper
diagnosis of the analysis results in determining the strengths and drawbacks of the company.
PESTLE accounts for Political, Economical, Social, Technological, Legal and Environmental
factors (Keane and Rogerson 2015). This provides an outline for the investors where and when