Global Business Enterprise: PEST, Porter Five Forces, and SWOT Analysis

This report explores the concept of global business enterprise and its impact on firms. It includes a PEST analysis, Porter Five Forces model, and SWOT analysis to examine the external factors affecting business growth and development. The report focuses on Pure Scooters, a leading retailing and manufacturing company of scooters, and discusses how political, economic, social, technological, and legal factors influence their operations. It also analyzes the bargaining power of suppliers and buyers, threats of new entrants and substitutes, and competitive rivalry in the industry. The SWOT analysis highlights the strengths, weaknesses, opportunities, and threats faced by Pure Scooters. Overall, the report emphasizes the importance of using these frameworks and theories to manage and expand global businesses.

GLOBAL BUSINESS
ENTERPRISE

Table of Contents
INTODUCTION..............................................................................................................................3
PEST Analysis- ..............................................................................................................................3
Porter Five Forces Model.................................................................................................................4
SWOT Analysis...............................................................................................................................6
CONCLUSION................................................................................................................................7
RFEFERANCES .............................................................................................................................8
BOOKS& JOURNAL:................................................................................................................8

INTODUCTION
Global business enterprise refers to business in which business operates their activities
across the globe. In global enterprise, firm explore opportunity at wider and broader level which
helps them to achieve the desired goals and objectives in proper manner. This report includes
Pure Scooters, which is a leading retailing and manufacturer company of scooters headquartered
in London, UK. Organisation provide electric scooters and modified adult scooters across the
country. This report comprises of PEST+1, porter five forces model, SWOT analysis. Global
business enterprise is affected by many factors which are to be considered and managed in
appropriate manner.
PEST Analysis-
PEST Analysis is framework used by firm to analyse and examined the external factors
which affect the business growth and development. With help of PEST, organisation is able to
identify the market situation in proper manner.
 Political Factors- Political factors are those which uncontrollable by the firm and they
have a deep impact on entities productivity. These political factor includes trade
restrictions, environmental and tariff law. In context to Pure Scooters, they are affected
by these political factors because these factors slow down their growth at deep level. As
they provide electric scooters, tariff and labour law effect their productivity. Political
factors are not controllable by firm because they occur outside the firm (Adekola,2016).
 Economic Factor- Another factor of PEST is economic factor in which inflation and
deflation rate, wages, taxes etc. These economic factors affect the business in future
prospectives at rapid level. In context to Pure scooters, wages rates and taxes are high
because they are dealing in automotive industry and market situation are dynamic in this
business. Economic factors affect the products of Pure Scooters because laws and
regulation are changeable which leads to conflicts and errors (Peng, 2016).
 Social Factor- Social factors are those which comprises of standard of living, culture,
religion etc. These are important to be considered as crucial factors because product of
the firm can only acquire customers and market by proper market research. In relation
with Pure scooters, they segments their products and services for those customers who
are used to or like driving scooters such as toddlers, adults etc.

 Technological Factor- Further comes the technological factor in which advanced use
technology, AI etc. takes place. Technology has given a huge contribution to the society.
In relation with Pure Scooters, they are using electric scooters and are developing their
technologies so that resources are used efficiently. Technology play important role in
grooming the business because every organisation weather it is small or large have use
the functions of technology in their business (Goyal, 2019).
 Legal Factor- Legal factors also has a deep impact on industry because they comprises
of commercial, immigration, tax et. In relation with Pure Scooters their growth and
development is affected by legal factors at broader level.
After a brief analysis of above matter it is concluded that it is important to analyse and
examine the external factors which affect the business growth and development at deep level.
PEST is a tool used by firm to examine and determine the elements which affect the organisation
and business activities. With help of PEST, firm is able to perform their activities and business
in proper manner.
Porter Five Forces Model
Porter five forces is model in which factors forces which affect the industry and its
business activities are driven by this model. With help of this model, Pure Scooters identify
competitors and rivals strategies as well as tactics in proper manner. This helps them to
overcome with challenges and threats. Effective decision making and market research helps the
business to in its continuity of functions and operations (Bîrsan,2016).
Forces which are involved in Porter Five Forces Model are mentioned below-
 Bargaining of suppliers- This force of model depicts that supplier always wants their
bargaining power to be high so that profitability is increased at rapid level. In context to
Pure Scooters, they deals with those suppliers who provide good quality of products as
well as services with affordable prices.
 Bargaining power of Buyers- Further comes the bargaining power of buyers in which
buyers usually wants their bargaining power to be high. In relation with Pure Scooters,
they purchase their raw materials and equipments where they are able to bargain and
which affect the cost of production at wider level.
 Threats of new entrants- In this, new entrants of organisation with same line of
business affect the entity market and profit share growth. In context to Pure Scooters,

with help of proper market research they track and monitor the market situations so that
business competitors are identified(Masih, 2019).
 Threats of Substitutes- Another force which affect the industry is threats of substitutes
in which availability of alternative and substitutes has deep impact on product sales
revenue. In context to Pure Scooters, Zapgo and Alcove also provide the scooters with
affordable prices and which has negative impact on Pure scooters profit.
 Competitive Rivalry- Another type of force is competitive rivalry in which competitors
revolve around the market. Competition in the market is increasing at rapid level and
which results in conflicts and chances of errors. Pure Scooters also have their competitors
in the market which affect the growth and development of business at deep level.
After a brief analysis of above matter it is seen that it is important to use models and
theories so that industry are able to maintain and manage the market situation and events. Thus,
Porter Five Forces model helps the organisation to identify opportunities and challenges in the
market at appropriate level. By using this model, new strategies and tactics are also developed
and implemented in effective manner and which results in positive outcomes (Varelas,2017).
SWOT Analysis
SWOT Analysis is framework used for identifying strength and weakness of business and
market. It also helps in proper strategic and tactics planning and which is used in business in
proper manner. With help of this analysis, entities are able to identify their capability and
performance level of business. Pure Scooters uses this analysis so that business activities,
functions and operations run smoothly. SWOT Analysis has been described below-
STRENGTH
 Main strength of Pure Scooter is that
their innovative approach E-scooters.
This makes them unique from their
rivals.
 Electric scooters are mostly used by
adults and toddlers which helps them in
targeting more customers and market
share growth.(Moreno-Izquierdo,
WEAKNESS
 Pure Scooters needs skilled and
expertise people for their product
managing and handling but due to low
wages and salary by the firm they are
unable to cope with customer demands.
 Their cost of production is high due to
use of advanced technology and

2016).
 Providing products and services at
affordable rate makes them strong
competitor in the market.
providing those products with less
prices makes their business growth
slow.
OPPORTUNITY
 Pure Scooters have opportunity of
accessing their business at both national
as well as international level.
THREATS
 Market is dynamic in nature and there
are ample number of competitors and
rivals in the same line of business
which affect the firm productivity at
broader level (Gürel, 2017).
 Due to use of technology and
machinery equipments resources are
becoming rare and huge cost is
involved in the production and
processing process.
After a brief analysis of above SWOT Analysis, it is seen that every firm has strength as
well as weakness of their business and activities. So, this analysis helps the firm to analyse their
capability and calibre to achieve the goals and objectives. Also, organisation is able to identify
market situations as well as trends. Thus, it crucial for firm to implement SWOT Analysis so that
outcomes are achieved in proper and positive manner(Bull, 2016).

CONCLUSION
After analysing above report it is concluded that Global businesses enterprise is important
because firm expand their business and activities at international level. Market is expanding and
situations are becoming critical for organisation. PEST Analysis helps the firm to determine and
evaluate the effect of external factors on business. Framework and methodology is important in
management as well as business because they guides the firm to operate in proper manner. So,
Porter Five Forces model helps the entities to focus implement strategies at every phase of
business so that forces which affect the business are identified. SWOT Analysis is also important
in the organisation as it helps to analyse the opportunities and threats business and strength and
weakness too. Thus, to access the business globally it is important to focus on concepts and
theories of management.

RFEFERANCES
BOOKS& JOURNAL:
Adekola, A. and Sergi, B.S., 2016.Global business management: A cross-
cultural perspective. Routledge.
Peng, M.W., 2016.Global business. Cengage learning.
Goyal, S., Sergi, B.S. and Esposito, M., 2019. Literature review of emerging
trends and future directions of e-commerce in global business landscape.World
Review of Entrepreneurship, Management and Sustainable Development,15(1/2),
pp.226-255.
Bîrsan, A., Shuleski, D. and Cristea, C.V., 2016. Practical Approach of the
PEST Analysis from the Perspective of the Territorial Intelligence.Ovidius
University Annals, Series Economic Sciences,16(2).
Masih, J., Rajkumar, R., Matharu, P.S. and Sharma, A., 2019. Market
Capturing and Business Expansion Strategy for Gluten-Free Foods in India and
USA Using PESTEL Model.Agricultural Sciences,10(02), p.202.
Varelas, S. and Georgopoulos, N., 2017. Porter’s competitive forces in the
modern globalized hospitality sector–the case of a Greek tourism destination.J
Tour Res,18, pp.121-131.
Moreno-Izquierdo, L., Ramón-Rodríguez, A.B. and Perles-Ribes, J.F., 2016.
Pricing strategies of the European low-cost carriers explained using Porter's Five
Forces Model.Tourism Economics,22(2), pp.293-310.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review.Journal of
International Social Research,10(51).
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N.,
Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-
Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework.Ecosystem services,17, pp.99-111.
(Adekola,2016)(Peng, 2016)(Goyal, 2019)(Bîrsan,2016).(Masih, 2019)(Varelas,2017)
(Moreno-Izquierdo, 2016)(Gürel, 2017).(Bull, 2016)