Business Organisations and Environments in a Global Context: Dedemen

This report examines the business environment of Dedemen, a Romanian furniture and home accessories company, focusing on its potential expansion into the Netherlands. The report delves into the background of business organization and environment, highlighting internal factors such as leadership, management practices, employees, organization, and suppliers, as well as external factors analyzed through a PESTLE framework (political, economic, social, technological, legal, and environmental). The report also explores various market entry strategies Dedemen could employ, including joint ventures, licensing, and direct exporting, to achieve its goals in the new market. The analysis provides insights into the challenges and opportunities Dedemen faces while expanding globally.

Business organisations and environments in a
global context

Table of Contents
INTRODUCTION...........................................................................................................................3
BACKGROUND TO BUSINESS ORGANISATION...............................................................3
BACKGROUND TO BUSINESS ENVIRONMENT................................................................4
MARKET ENTRY STRATEGIES............................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business organisation and environment means there are including many persons,
activities, tasks and services those are provided by the company to customers. Business is a
effective decision making process in which produce some goods and products for customers.
Business help to create customers in the market and all business wants to give proper satisfaction
to them(Nahavandi 2016). Business organisation and environment help to introduce business
nature in the effective manner and its also help to identify which one company produce which
products and goods for customers). Dedemen is the Romanian company that is manufacture
furnitures and kitchen appliances or home accessories for customers. This company wants to set
up their business in the Netherlands. And try to grow their business in the other country.
Dedemen company wants to provide good quality of furniture and other home accessories to
customers after that can take feedback through the customers regarding their products and goods.
BACKGROUND TO BUSINESS ORGANISATION
Business organisation provide products in the market for customers to full fill their needs
and wants in the effective manner. Dedemen is the Romanian company its provide furnitures and
kitchen appliances to customers with good quality and feature. Dedemen wants to establish
business in the Netherlands and build a effective image in the other country's market. This
company is the modern architectural in the nature its provide modern design furnitures, kitchen
appliances and home accessories to customers to given proper satisfaction to them(Hill,Cronk
and Wickramasekera2013). Its using many strategies for developing their business the other
countries and wants to build a effective image in the market and also in customers mind.
Dedemen using many strategies and methods to manufacturing and assembling parts in the
systematic way. And also how to manage employees in the business organisation and how to
control on them. For growing the develop business in the market so has to be use some effective
and useful techniques. And try to manage all activities and services those are provide to
customers and also try to understand customers need and wants. In the market has many
competitors to beat each other to manufacture unique products and with effective designs of
products(Trompenaars Hampden-Turner 2011). If a company wants to set business in the other

country so has to be face many issues and challenges in the market. So before start any business
has to know all rules and regulations about the country.
BACKGROUND TO BUSINESS ENVIRONMENT
In the business environment represent the all internal and external activities relating to
the company. All these activities and factors relating to environment those are affecting on
business. Dedemen organisation in has many factors those can be affect manufacturing process
of goods and also affecting on marketing process. This company start a new business in
Netherlands of furniture, kitchen appliances(Ferraro Brody,2015).
Internal factors: Internal factor define as a factor which have direct impact on business
environment. Internal factor direct relate with the company and internal factor also depend on
business structure, business environment and business culture that affect the business activities.
Internal factors are controllable because company can control these factors.
Leadership: Leadership style refer provide direction to employee, implement plan, make
strategy, and motivate their team. Leadership is a process and important factor of business.
Dedeman company employ many managers to manage team and succeed the organisation target.
cited business make many strategy with their team leaders to increase sales, for the analysis of
market which is helpful to achieve organisation goals and mission. A leader can provide a future
direction to the company which is too important(Oliveira Martins,2011). They can also motive to
their staff in order to achieve long term goals and objectives.
Management practices: Management style refer the management of organisational structure.
Dedeman company have a great management style. All the company employee follow the
company rules and regulation. When a company want internal growth in organisation so it have
to manage their their team, their working style and make many strategy to achieve organisation
goal.
Employees: Employee strength make an organisation batter. It also increase the work efficiency
of organisation(Low Chen and Wu2011). Dedeman Company have many employees so company
have opportunity to increase sales, more productivity, complete project on time. Cited firm
company is one of the best leading company in its field. organisation Company hire employees
on contract based.

Organisation: Organisational and Operational are the part of administration management.
business unit management manage all the reports, work reports, invoice, and data. Company
have to evaluate it system and manage the supply chain system according to organisation. Supply
chain system provide the things to customer and supplier. Supply chain system is a important
part of management and how top level managers manage it to achieve company target and full
fill the need of market(Gilbert Rasche and Waddock 2011).
Suppliers: These are another important stakeholders of the company where the company required
to maintain good relationships with them. In the context of Dedeman, they having various
suppliers which supply row materials and other components. It is essential for the manager is to
pay them on a regular basis which can help to create a sound relationships which them.
External factors: The external factors are those factors which is not under control of the
organisation they are dynamic in nature company can manage these factors but cannot fully
control them. To study the external factors PESTLE analysis has to be done. In PESTLE it have
6 most important element which affect the business environment-political, economical, social,
technological, legal, environmental
Political factors: Political factors are one the most important factor that influence the business
environment they the factors which is implement by the government of the particular country
every country have its own government rules and regulation which affect the business policies
such government policies are tax rates, tariff rates, entry policies, import and export policies,
labour laws, licence policies etc. In context to Dedeman it is Romania company and plan to
expand its business in neither land the company can go for the this investment because it is the
most liberalise country to invest. If the products really meet the expectation of the customers
they openly welcome the new entry in the market. But they see the products has to the high
quality because the don't like to waste their time on not effective products.
Economical factors:- Economical factor is another important factor which affect the business
environment. These factors are changes according to the economical position of the country.
Some of the economical factors are exchange rates,employee rates, inflation rates,GDP, demand
and supply of the products in the market. These factors are not under control of the organisation.
Company as to make plan and policies to work accordingly to sustain in the market and get faced
by these factors. In context to the Dedeman they can start their business in neither land as the
country is growing after its growing economy phrase(Alshamaila Papagiannidis2013). As there

is less social activities and standard of living of the neither land people are low the company can
contribute to its economy by providing them the new design products and helps to improve their
standard of living.
Neither land has the tourist attraction place so this also add an advantage to the company to sell
its product. In term of currency company have to to the business in EURO.
Social factors: Social factors are those factors which is influence by the people and population of
the particular country what are the values, belief, preferences of the people lives in the country.
Company as to see the lifestyle of the people their attitude toward the new products and their
ability to purchase that product.
In context to the company the neither land population are every particular to the product they
don't waste time when they don't find the product more useful so company has to focus on the
quality of the product. They are price sensitive as they don't find the product worth of the money
they are not ready to buy it. People how lives in neither land they spoke Dutch language so
company as to communicate the customers in that particular language so the can attract toward
the product and get ware of the feature of the product.
Technological factors: This factor can change according to time as there is new upcoming
products and new process arise with time. This make changes in the business environment as
new products come into the market and new process of producing them. The company as to keep
update its product to survive in the market and to earn the profits. In context to the company this
company government expand for on the research and development so the company can for set up
Illustration 1: Netherlands GDP growth Rate

in this country so they can get support in the research by the government. With the research and
development government also provide the patent facility to secure the new entry in the market .
As the education level is not that high it will be difficult to get skilled worker and has to spend
more time to trained them(BachmannInkpen 2011).
Legal factors: This factor indicates the legal rules which has to be follow while conducting the
business in the particular country. There are some products which cannot be sold in the ,market
without the licence. The legal laws will there for the employees, to maintain the stock level and
to interact the customers. In the context of the company(Dedeman) if they want to get
employees for the company they have to sign the contract there employees and also open the
subsidiary in the following country to run there business.
Environment factors: These factors tends to environmental friendly policies which will not harm
the environment of the country. In context to the company has to follow the certain rules
regarding to the the eco friendly environment. There will be different department in the country
to see this issues and company as to get approval from that department to start their business.
MARKET ENTRY STRATEGIES
It is essential for the business organisation is to expand their business in to other
countries. It can provide new business opportunities so that they can increase their sales and
market share in the near future. In the context of Dedeman, they wants to expand their business
in the Netherlands which is one of the attractive market for the cited business unit. For this, there
are various strategies which can be used by the company in order to attain their long term goals
and objectives(Caligiuri,Tarique2012).
Joint venture: This is one of the common approach which can be used by the business
organisation to expand their business operation. In the context of Dedeman, the higher
authorities of the business firm are required to identify those business unit which can suitable for
the joint venture. This is one of the suitable approach for market entry where two and more
business organisation can joint together and operate their business. The advantage of this
approach is that these firms can share resources and technology which can help to provide
competitive advantage in the market.

Licensing: This is another method which can help to enter in the new market in a cost effective
way. In the approach a company can transfer the right to another business unit regarding their
products and services. It is one of the most appropriate strategy which can help to increase the
market share and revenue of the company. There are various small and medium enterprise in the
Netherlands which can help to their authorized dealers to the company(NamPardo 2011). In the
approach the company can provide the right for production to their goods and services in the
another country.
Direct exporting: This is another way where a business organisation can selling their goods and
services in to the another country. There are large number of business units which having their
own sales plan in order to export their products. For this they required to identify their dealers in
the Netherlands so that they can sale their products. There are various factors which can
influenced this decision and affects the business performance and sales revenue of the company.
These factors can be included import duty, tax rate and transportation charges which can increase
the cost of furniture products of the company(Elliot2011).
Greenfield investment: This is one of the most appropriate approach where one company can
invest large capital in the particular country. In such kind of investment a business organisation
can buy or acquire various assets such as land, building and operate their business. The risk
associated with the business is more as compare to option. There are various external factors
which can affects the business operation and its performance. These factors can be government
laws and legislation, transportation charge, technology and availability of skilled workforce.

As per the above described market entry methods it is essential for the cited business
organisation to select an appropriate and suitable techniques which can help to achieve their
desired goals and objectives(Nahavand2016). Netherlands is one of the major economy in the
European Union which per capita income is quite goods as compare to other countries. It can
provide a good opportunities for the company to expand their business in to these countries. As
per the given above option Dedeman can choose greenfield investment. It is important for the
higher authorised is that they can evaluate all these factors which can affects the business. For
example, the government of UK is politically stable which can overcome the political risk of the
company. There are various rules and regulation which are related to the foreign direct
investment also favourable for the cited business firm(HillCronkWickramasekera2013).
Thus, the greenfield investment can provide a good opportunities for the Dedeman in the
Netherlands. It can enhanced their market share and revenue for the longer run which is a
common goals for each and every business organisation.
Illustration 2: Netherlands Per Capita

CONCLUSION
As per the above mentioned report it has been concluded that international business is
one of the complex and competitive task. There are various global factors which can influenced
the business and its future growth. Therefore, a company required to analyses and evaluate these
factors in a effective manner. The report explained about the internal and external factors which
having a large impact on the business. There are various strategies which can be used by a
business organisation in order to attain long term success. The reports discussed about the
various marketing entry strategies which can provide a golden opportunities for the company that
they can increase their market share and profitability in a effective manner.

REFERENCES
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