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Porter's Five Forces Model of Denyall

   

Added on  2021-01-02

14 Pages3923 Words302 Views
Global Strategy

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................11. STEEPLE Model.....................................................................................................................12. Porter's Five Forces Model......................................................................................................43. Shareholders Map....................................................................................................................54. Strategic capabilities of company...........................................................................................65. VRIO Model............................................................................................................................76. SFA strategy (Suitability, Feasibility and Acceptability).......................................................9CONCLUSION.............................................................................................................................10Reference.......................................................................................................................................11

INTRODUCTIONGlobal strategy is the procedure of expanding and competing in global market. Global,multinational and international strategies are covered in the global strategy. In general terms,global strategies means that company is moving in international market outside home country(Sanchez-Runde, Nardon and Steers, 2013). In order to achieve the objectives and goals ininternational market, these all are the three areas which are very essential. For internationalexpansion, global strategies play a vital role. In this present report, Denyall Company of Franceis chosen that is a cyber-security company. Its parents company is Rohde & Schwarz. This reportwill analyse the macro and micro environment that have direct and indirect effect on company.STEEPLE and Porter's Five Forces model will be discussed in this report. Furthermore, strategiccapabilities and VRIO models are also discussed here. Besides this, SFA Strategy (Suitability,Feasibility and Acceptability) will also be explained here.MAIN BODY 1. STEEPLE ModelSTEEPLE analysis is the most popular tool that helps to analyse effects of externalenvironment. This is a simple strategic management method which is used to study the impact ofexternal environment. This model is based on PEST analysis with the addition of legal, ethicaland environmental factors. Denyall Company is also using STEEPLE analysis to study andanalyse effect of macro environment on the operations and functions of business. There are fivefactors involved in this model which are socio-culture, technological, economic, environmental,political, legal and ethical (Dann, 2016). Socio-culture Factors- Social-culture factors have direct impact on the business as itincludes beliefs and practices, traditions behaviour and customs of all the people living inthe particular country. All these elements of social-culture has directly influenced bytrends, fashion, lifestyle, willingness to pay and activities of market. It is one of the mostessential components that affects the decisions of marketing manager as well as goals andobjectives of company which is going to enter in international market. Besides this,average disposal income of people, wealth of people, level of education, habits of buying,preferences of customers and many other social factors that has direct impact on theoperation and function of company (Getz, 2018). 1

Technological Factors- Technological factors are those that are becoming very popularamong the people as nowadays, people are more concerned about the technology they areusing. The changes in technologies have direct impact on the company. In order to takethe best strategic decision about development and growth of company as well as aboutinvestment, Denyall is using this model to avoid destructions in the activities ofcompany. In this modern world of speedy advancement of technology, the decisions ofmanager of company should be flexible and quick. In order to survive in turbulentcompetitive environment, flexibility plays an essential role (Werthner, 2018).Economic Factors- Economic factors consider all essential trends in economy whichassist or hinder in achieving goals and objectives of company. Employment factor,behaviour of consumers, rate of inflation, interest, banking and others are commonfactors that are included in economic factor. Laws and regulations of the nations are alsothe part of economic factors. There are some economic indicators like number of jobscreated by company in the market, strength of union and additional load of salary. Political Factors- Political factors have a direct impact on the business as it is closelyconnected to legal factors. Stability in the political environment develops confidenceamong people and company planning or investing in a specific nation. In thedevelopment and growth of company as well as to economy, political factor has a greatrole (Williams, 2017). Social and cultural environment of nation is influenced by politicaldecisions. Beside this, there are some other factors which are involved are procedure,permits, traditions of bribing government officials, power, culture and many others. Legal Factors- Legal factors include all the laws and regulations of country that havedirect and indirect impact on the functions and operations of the business. Legal factorshave both positive and negative impact on the operations of business. Legal factors arelinked with tax and custom regulations such as tax code of country, restriction of tax onspecific business, export and import restrictions as well as income tax and corporate tax. Ethical Factors- Ethical factors are those factors that include all the processes andactions that influence the behaviour of managers and workers inside the organisation.Ethical factors include morality, duties, behaviour and integrity, pons and cons ofcompany as well as betterment and welfare of society (STEEPLE Model, 2017). Denyall2

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