(Doc) Introduction to Management: Assignment
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Added on 2020-05-28
(Doc) Introduction to Management: Assignment
Added on 2020-05-28
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RUNNING HEAD: Introduction to management 0WILMARIntroduction to management
Introduction to management 1ContentsIntroduction..........................................................................................................................................2PESTLE Analysis................................................................................................................................2Explanation of PESTLE..................................................................................................................2Impact of PESTLE on Wilmar.......................................................................................................3Porter’s five forces analysis...............................................................................................................4Explanation of Porter’s 5 forces.........................................................................................................5Impact of Porter’s five forces on Wilmar...........................................................................................5Strategic Recommendations.............................................................................................................7Expand overseas, expanding within the same country..............................................................7Merger and acquisition, Joint ventures and Strategic alliances.................................................7Changes to organization structure, new marketing initiatives, process change........................7Introduction to new products and services...............................................................................8Conclusion.............................................................................................................................................8References........................................................................................................................................10
Introduction to management 2IntroductionWilmar was established in 1991 and it’s headquarter is in Singapore. It is the largest company listed on the Singapore Stock Exchange. The company is engaged in agribusiness activities including oilseed crushing, oil palm farming, oil filtering, sugar refining and biodiesel, specialty fats, oleo chemicals, composts, flour and rice milling.The company has more than 500 trade plants and wide dispersed network covering China, Indonesia, India and 50 more countries. It has labour force of 90,000 people. The company provides management services to more than 400 subsidiary companies. The agricultural products of Wilmar are the preferred choice of consumers and food industries. Initially the company started operations as palm oil trading company. Over the years, company expanded it’s operations into foreign countries (Anderson, et. al. 2015). It is also one of the biggest plantation owners in Malaysia and Indonesia. The company faced accusations against grabbing unresolved land in Africa. In this report Wilmar is taken to analyse external environment. For this, PESTEL analysis is done. Porters five force analysis is done to find the forces that affect the company’s market environment. The strategic recommendations are also given to avoid problems which are being faced by the company. PESTLE Analysis The PESTLE analysis is used by the companies to determine external forces that have impact on organisation. Macro environmental factors include forces which haveimpact on organisation but are out of control of organisation. PESTLE includes political, economic, social, technological, legal and environmental factors. By using PESTLE analysis an organisation can maximise opportunities and minimise threats for an organisation.Explanation of PESTLEPolitical factors: Political factors determine the impact of government policy onorganisations. The political factors comprise tax policy, monetary policy and trade tariffs. It may affect the revenue generating structure of organisation (Hillier, 2015).
Introduction to management 3Economic factors: Economic factors are determinants of economy’s performance which have impact on a company. Like increase in inflation rate of an economy affects the price, products and services of the company. It alsoaffects the purchasing power and demand in an economy. Social factors: These factors have impact on market and society. The social factors include population growth, career attitudes, cultural expectations, age distribution, health consciousness and global warming (Stimson, 2016).Technological factors: It is important to consider technology factor, as soon after the launch it’s soon become out-dated. It includes advertisement, marketing and promotional programs. Technology changes the way of producing and distributing products and services. Legal factors: It includes all the legal aspects such as employment, taxation, imports, exports, quotas, equal opportunities, consumer rights, laws and more(Stewart, 2014). In order to trade successfully the companies need to consider legal and illegal factors in the territories they operate. Environmental factors: It includes all the factors which are determined by the surrounding of the environment. Environmental factors include temperature, natural calamities, ground conditions and contamination etc. Due to the increasing importance of CSR (Corporate Social Responsibility), this factor is becoming more important (Chance & Brooks, 2015).Impact of PESTLE on WilmarPolitical factors: The political factors have huge influence on the regulation of business. These factors are low trade restrictions, assistance provided by government, reduced costs and experienced political environment (Snyder, 2014). The spending power of consumers and other competitors has equal influence on Wilmar.Economic factors: The economic factors have influence on Wilmar in the form of purchasing power of potential customers and inflation rate which determines the product prices and returns. It also determines the nature of competition faced by the Wilmar and availability of financial resources in the country. It also includes many other factors such as taxes, government expenditure, high productivity and public investment in research and development.
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