Comprehensive Analysis of Dusal Limited's Business Environment

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This report provides a comprehensive analysis of the business environment of Dusal Limited, a textile industry company. It begins with an introduction to the business environment and its importance, followed by an examination of both internal and external factors. The internal factors are assessed through a SWOT analysis, highlighting strengths, weaknesses, opportunities, and threats. The report then delves into Porter's five forces, evaluating the competitive landscape, including the threat of new entrants, substitutes, bargaining power of suppliers and buyers, and rivalry among firms. Furthermore, a PESTEL analysis is conducted to explore the political, economic, social, technological, environmental, and legal factors impacting the company. The report concludes with a discussion on the mode of expansion for Dusal Limited, offering valuable insights into its strategic positioning and growth prospects within the global market.
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Global Business in Context
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Table of Contents
INTRODUCTION...........................................................................................................................3
ASPECTS OF BUSINESS ENVIRONMENT................................................................................3
Porter’s five forces.......................................................................................................................5
PESTEL Analysis........................................................................................................................6
Mode of expansion......................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1
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INTRODUCTION
Business environment in an organisation deals with the different activities that the organisation
will move ahead with operational policies. It is important that there are certain circumstances
that are to be taken care about in the organisation right from employees till the operation of tasks
that are to be performed by the organisation (Khan and et.al, 2019). Different companies work in
different fields and the marketing world is full of challenges and business environment will deal
with both internal as well as the external factors through which the organisation can achieve
success. The internal factors will help to analyse the prospects that are to be still taken care about
and the external factors will focus upon objectives the organisation will have to inherit the
strategies that are required for it to combat with different organisations that are working in the
same field. The entire report deals with the business environment and that with regards to the
company Dusal Limited. It is one of the textile industry that is operating and is known to be one
of the most prominent one. The business environment with regard to this company will let people
understand how far it is being able to tackle with the internal as well as the external factors. The
operations that are carry forward in the organisation and depend upon their employees as well as
the management which made it one of the most astonishing industry and the country. The entire
report brings forth the structure as well as business environment.
ASPECTS OF BUSINESS ENVIRONMENT
Business environment in an organisation will deal with both external factors and internal factors
(Gaganis and et.al, 2019). The internal factors in this regard of the company since buying textile
industry will deal with the swot analysis. SWOT analysis:
SWOT analysis deals with the internal factors of the organisation and it is also the highlighting
factor which will bring forth strengths weaknesses opportunities and threats that are in regard to
the organisation. It is necessary to analyse internal aspects of the organisation every now and
then such that the competitive advantage with regard to the organisation can be estimated and
then the organisation can implement strategies in order to move ahead with the prospect of
growth. Being a textile industry and the manufacturer of bedding this is set to be a challenging
aspect to sustain and the society where there are different organisations that are working and are
making success.
Strengths: the strength of the organisation will help to analyse and act as push up to the
organisational implementation and growth (Contractor and et.al, 2020). It is necessary to identify
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strengths of the organisation such that one can implement the choices that are to be needed for
the organisation to reach the prospect of satisfying customer needs. The strength in regard to this
organisation is such that the quality that is maintained by the organisation is a well reputed one.
Quality is the major criteria when it comes to product and that will stand as the major strengths
for any organisation. When there is particular quality that is maintained for the products than the
customer base will automatically increase and the organisation can stay form for over a long run.
This factor is said to be one of the biggest strengths for the company that has made it achieve a
mark of being the best (Hrechyshkina and Samakhavets, 2019).
Weakness: weaknesses are said to be the drawbacks for every company that are to be corrected
at regular intervals of time such that they would will not stand as a barrier for organisational
growth. Weaknesses are a common factor for every organisation violators operating in a business
environment. When the organisation is in the initiation stage it becomes challenging where the
company will stand as one of the competitor and then at this point the weaknesses will be
highlighted. When a particular weakness is being highlighted that will have to be rectified such
that the weak points will not contribute and make business environment a complicated one. The
weakness that falls in regard to the organisation is such that there is no proper alignment in the
organisation where employees are not given proper training and that leads to one of the most
probable weakness in the organisation. It is always important that the management will have to
train the employees in order to approach its customers without whose intervention that cannot be
a customer base that is maintained (Cepel, 2019).
Opportunities: the effect of different opportunities that fall in regard to the organisation. Since
this is one of the emerging betting manufacturer in the country therefore it has got a lot of
opportunities for it to expand globally. When maintaining its quality is its first priority than the
organisation can gain a competitive advantage that is necessary for it to create more number of
products which can in return maintain stature but is necessary for it to come back with
competitive agencies. For this company to attain opportunities it is necessary that the weaknesses
will have to be identified and will have to be corrected such that the opportunities will fade away
towards it.
Threats: the threats in regard to this organisation as the competition. There is a heavy
competition for manufacturers in the textile industry and therefore the threat of this is to be the
competition that is pertaining in the marketing world (Calabrese and et.al, 2018). In order to
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move ahead in the competition the organisation will have to inherit strategies that are necessary
and make its employment as a potential one such that the innovations in bringing up new
products and designs will be implemented by the organisation. It is necessary to make choices
that are required by the customers and their satisfaction will have to be the major priority in
order to stand form and unique in the field it is operating.
Porter’s five forces
For every organisation it is necessary to identify the competition which is pertaining around the
industry that is operating. The porters five forces will bring out the five different factors that are
essential to be contributed for the organisation and to analyse them at regular intervals such that
the competitive advantage can therefore be gained for the organisation.
Threat of new entrants: The threat with regards to new entrants is a little hight for the
organisation Dusal. This being one of the bedding manufacturer it is a typical task to cope up
with the onset of the entities with respect to the threat of new entrants (Gavurova and et.al,
2017). There is a heavy competition that is pertaining to the entry of new comers that will effect
the organisation. The organisation Dusal will have to develop unique strategies to keep a check
on the existing ones.
Threat of substitute: the threat of substitutes deals with the aspects that will bring forth the
formula that are being inherited by other organisations which have been used by this organisation
and its development prospect. There is no particular threat of substitute for this organisation
since the product and the quality that is maintained by the organisation is standing firm in the
industry and its formulas are being unique and the organisational policies are confidential so the
threat of substitute is a little low for this organisation. Although there is a probable threat with
regard to status about that is not impact the organisational growth.
Bargaining power of suppliers: the bargaining power of suppliers a little high for the
organisation because the result of different organisations that are being tackled by the suppliers.
The suppliers are the probable aspect of using their products is said to be immense for the
organisation. Although there are a set of suppliers for the organisation at the bargaining power is
a little high and the organisation will have to tackle with the charges that are being imposed by
the suppliers. in order to maintain a proper supply the organisation will have to first design
entities that are required to incorporate a midst of all the competitive policies. Suppliers play an
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essential aspect for the organisation and the company will have to develop an environment where
it can seek more number of suppliers that can supply products at a good rate and charges.
Bargaining power of buyers: bargaining power of buyers is a little high because this seems to
be a bedding manufacturer therefore there seems to be different entities that are incorporated in
the mind of buyers while deciding for a product. It is necessary that the bargaining power of
buyers will have to be limited with regard to organisation such that it cannot impose a serious
impact for the competitive advantage. The bargaining power of buyers will be decided by the
product quality that is being offered by the organisation. The quality in this regard will have to
be maintained in an efficient manner in order to maintain the mark of being the best such that the
bargaining power will also stand firm.
Rivalry among other firms: the rivalry between other forms will occur when an organisation is
developing and is in a growth prospects. Rivalries are factors that will also define the
competitive advantage of the organisation. As per the organisation there are no records of rivalry
with other organisations but is in a face of competition and is at time developing strategies that
are necessary for it to combat with the competitive atmosphere of the marketing world in which
it is operating (Komljenovic and et.al, 2017). The major aim of the organisation is to move ahead
in the prospect of growth and therefore there is no record of a big rivalry that has taken place in
the history of the organisation.
PESTEL Analysis
The PESTEL analysis of the organisation deals with the external factors that are falling in
regards to the organisation. It is necessary to identify the external factors every now and then
such that the probable factors regarding the competitive advantage can be known and therefore
the company can move ahead with the prospect of growth. PESTEL analysis deals with the
political economic social technological environmental and legal factors that are mostly essential
for every organisation to deal with. Analysing them at regular intervals will help the organisation
to develop strategies in order to compete in the marketing race. There are many other
organisations that are evaluating their PESTEL analysis to identify the margins of generating
their revenues.
Political factors: when an organisation is operating in a particular country there for the political
factors will fall upon the organisational policies. It is to be noted that government is a major
source for organisation to operate in a particular industry. The government interventions in two
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projects as well as the new government changes will be affecting the organisational operations
will stop the environment of the business will be affected by the change of policies that the
government will impose every now and then. For the organisation government is the major effect
and that will have to be taken care about by developing a good relation with the political system.
Economic factors: economy is one of the major concern for every organisation it is important
that whatever strategy the organisation is working for it will have to contribute for a good
amount of economic policies. The different economic policies that fall in this regard include the
inflation rate and foreign exchange rates. These are to be taken care about by the organisation
and will have to be rectified at regular intervals. The economic policies will also define the
performance of the organisation and they play a crucial role because economic downfall will
result in affecting the organisational growth.
Social factors: the social factors that fall in this regard will include the norms and policies of
societal influence. Many people are not aware of the industry that it is operating and therefore
those seem to be impacting the operation of the organisation. it is first mandatory that all the
policies of the society will have to be taken into account while developing strategies and
operating a business in the society. It is important that the considerations of societal believes will
have to be identified by the organisation such that they does not impose a serious threat for the
organisation. According to this organisation there are no particular societal complaints and the
organisation whose in compliance with the societal norms.
Technological factors: Technology set to be reaching great heights. the technology has been
inherited by almost all the organisations in order to move ahead in the pace of development. In
this era where particularly marketing is said to be one of the most competitive aspect
technological factors will have to be taken care about and are to be implemented in the
organisation such that the organisation can attain more number of opportunities with regards to
its operational policies. In this modern business environment it is necessary that the organisation
will have to go in terms of technology and will have to implement the basis where the
technology can take the organisation amidst of its customers in no time. The technological
implementation with regard to this organisation is that it has developed it its website in a very
good form where there is a lot of information that is available for the customers to go through.
All these social media as well as the digital marketing platforms are seem to be a boon for this
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organisation since they seem to be attracting more number of customers in terms of purchasing
the goods.
Environmental factors: environmental factors play a crucial role in determining the prospect of
the organisation. The age of the organisation is determined by the environmental policies that are
being inherited by the organisation every now and then. Environmental damage will not be
encouraged by any organisation for over a long run and that will determine the pace of the
organisation. The company will have to focus upon developing strategies that will not bring
about a destruction for the environment as well as the resources are to be used in a compliance
manager where there can be no wastage of resources. The environmental acts that fall in regard
to operational policies of a business will have to be taken care about and the organisation is
moving ahead with all this prospect.
Legal factors: legal factors of those that will form in regard to the employment factors in the
organisation as well as the legal team that revolve around the organisation. Legal factors are very
important for every organisation that is working under a government. The legal factors almost
relates to the employment where the employees will have to be prominent with their working
hours as well as their wages that are related to them. The organisation will follow all the legal
terms and policies and will give preference to its employees compensation as well as their
personal factors that are in regard to the organisation. Legal policies are the highlighted factors
for every organisation in terms of legal entities.
Mode of expansion
Every organisation when it is making success in its parent country will probably aim high to
expand its base into other countries. This is what is known as global expansion. Global
expansion refers to the art of expanding an organisation into many other countries such that it
will attain an international base and the growth prospects can therefore be guaranteed. The
different modes of entering into markets on an international basis (Črešnar and Jevšenak, 2019).
One of those modes letter followed by the company Dusal is to choose buying office as well as
the partner abroad. It is necessary that a local partner will have to be guaranteed before
expanding into other countries. The local partners have a great knowledge regarding all the
probable strategies as well as the modes of communication with their customers and therefore the
local partnership is important for every organisation in order to sustain the new prospects of the
operation of the organisation. It is not until when an organisation gets in partnership with the
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other organisation that they will be able to understand the pertaining issues and the country
where it has expanded. Therefore this organisation on expanding its base into another country the
mode of operation will therefore be using a partnership that has appropriately been operating for
years.
Country the organisation is expanding
The organisation Dusal is going to expand its base into Romania. Romania is although one of the
best and a feasible mode of expansion, the country is not prone to development in the recent
years. There are underdeveloped labour and that might be a disadvantage for the organisation to
expand its base since this organisation being the bedding manufacturer requires more labour
force. The advantage is that the organisation can easily make employment buy hiring the local
people who are jobless and are ready to get incorporated into the employment and that can be an
advantage to the organisation.
CONCLUSION
The entire report concludes upon highlighting the aspects of business environment and the
prominence of each factor that is to be taken care in an organisation. An Organisation is bound to
be a set of policies and strategies that are incorporated every now and then such that the
components of the organisation will inherit the chances of being the best in operating its business
policies. This is what is being depicted in the report. The report concludes up on highlighting that
organisational business is variable entity and its depends upon the change prospects that are
taken care in the organisation. Some of the factors that are included in this report in wall those of
internal and external factors. In the internal factors the swot analysis of the organisation is food
for and in the external factors a PESTEL analysis is depicted. The report explains that what
analysis will bring forth the strengths weaknesses opportunities and threats that are in regard to
the organisation and those are to be analysed at particular intervals of time such that there will
not be barriers in terms of its operation. The PESTEL analysis will highlight the external factors
that follow upon the organisation and are to be taken care with your entities on managing factors
like the political, economic, social, technological, environmental and legal issues that are
pertaining amidst the organisation. The porter's five forces are put forth in this report which will
help to analyse the competitive advantage of the organisation. It is a necessary factor that
competitive advantage will have to be analysed every now and then because there are a set of
different organisations that are working in the field that the organisation is working for. The
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report concludes up on explaining the entry mode of the organisation into other countries and the
one that is being depicted here is partnership with local entities. The report clearly explains that
partnership is an essential factor and that is to be a first priority for the organisation and that to a
textile industry will get to know the aspects that are pertaining in the country in which it is going
to expand.
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REFERENCES
Books and journals
Calabrese and et.al, 2018. From mechanical to cognitive view: The changes of decision making
in business environment. In Social Dynamics in a Systems Perspective (pp. 223-240).
Springer, Cham.
Cepel, 2019. Social and cultural factors and their impact on the quality of business environment
in the SME segment.
Contractor and et.al, 2020. How do country regulations and business environment impact foreign
direct investment (FDI) inflows?. International Business Review. 29(2). p.101640.
Črešnar and Jevšenak, 2019. The millennials' effect: How can their personal values shape the
future business environment of industry 4.0?. Naše gospodarstvo/Our economy. 65(1).
pp.57-65.
Gaganis and et.al, 2019. Culture, business environment and SMEs' profitability: Evidence from
European Countries. Economic Modelling. 78. pp.275-292.
Gavurova and et.al, 2017. Predictive potential and risks of selected bankruptcy prediction models
in the Slovak business environment. Journal of Business Economics and Management.
18(6). pp.1156-1173.
Hrechyshkina and Samakhavets, 2019. Foreign trade of the Republic of Belarus in the
international business environment.
Khan and et.al, 2019. Perception of the selected business environment aspects by service firms.
Journal of Tourism and Services. 10(19). pp.111-127.
Komljenovic and et.al, 2017. Organization: A new focus on mine safety improvement in a
complex operational and business environment. International Journal of Mining Science
and Technology. 27(4). pp.617-625.
Online
Business Environment: [Online]. Available through: < Business Environment: Meaning,
Definition, Concept, Components, Significance (economicsdiscussion.net) >
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