CACI International: Expansion Strategies and Market Analysis Report

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This report examines the potential for CACI International, a company specializing in anti-aging facial treatments, to expand its business into Finland. The report begins with a SWOT analysis, identifying CACI's internal strengths (e.g., skilled workforce, strong sales) and weaknesses (e.g., increasing taxes, high R&D investment) as well as external opportunities (e.g., growing demand for beauty products) and threats (e.g., changing regulations, high interest rates). The analysis highlights the importance of leveraging strengths to capitalize on opportunities while mitigating threats. Following the SWOT analysis, the report employs a PESTLE analysis to assess the external macro-environmental factors in Finland. This includes an examination of the political stability, economic indicators (GDP, per capita income, unemployment, and inflation), social aspects (population growth, demographics, culture, and religion), technological advancements, legal frameworks, and environmental considerations. The PESTLE analysis aims to provide a comprehensive understanding of the Finnish business environment, enabling CACI International to make informed decisions about market entry and strategic planning.
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Business Organizations
and
Environment in a Global Context
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
SWOT analysis............................................................................................................................3
PESTLE ANALYSIS..................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
In the present times, business organization places emphasis on operating at both global
and national level with the aim to maximize productivity as well as profitability. In this regard,
business unit requires highly strategic and competent framework for attaining success in the
overseas market. Moreover, there are several factors which highly differ from country to another.
Thus, by developing effectual framework company can get the desired level of outcome or
success. The present report is based on CACI international company which is the trading
division of Micromode Medical. It offers anti-ageing facial treatment services to the customers
and thereby attained leading position in such sector. Now, business unit is planning to start
business in new country such as Finland. Thus, report will describe the extent to which condition
and position of Finland is sound for the purpose of expansion. Besides this, it will also depicts
the internal factors that helps in making suitable decisions.
SWOT analysis
Internal environmental analysis can be conducted by the business organization through
the means of SWOT analysis. Moreover, it clearly presents the strengths, weaknesses,
opportunities and threats. By identifying all such aspects business unit can develop effectual
framework which directly contributes in the attainment of organizational goals and objectives.
Further, weaknesses also provide deeper insight to the business enterprise about the areas which
require high improvement. In addition to this, by using the strengths CACI international
company can grab the opportunities to the large extent. Along with this, by assessing the threats
level company can make suitable modification in the existing strategies and policies. In this way,
SWOT analysis is the highly effectual techniques which helps company in taking decision about
expansion more effectively and efficiently.
Strengths
Wide distribution and sales network
Skilled workforce
High profitability and revenue Industry recognition (Barrier to market
Weaknesses
Incline in taxes
High investment in research and
development activity
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entry )
Opportunities
Introduction of new product and
services
Growing economic aspects
Growing demand Focus on acquisition (SWOT analysis
of CACI international, 2016)
Threats
Changing rules and regulations
High cost
Quick changes in the price level
High interest rate
Threat from external business risk level
cash flows
Strengths: The above mentioned SWOT analysis presents that sales revenue and
profitability aspect of the firm is increasing with the very high pace. It is one of the main
strengths of firm because survival of the firm is highly influenced from such aspect. In the
present time, with the motive to look like young people spend more money on beauty products
and services. Along with this, quality which is maintained by CACI international resulted into
high sales and gross margin. Further, business unit has high skilled and competent workforce
who delivers high quality and effectual services to the customers (Helms and Nixon, 2010).
Moreover, in both manufacturing and service sector skills as well as efficiency level of the
personnel directly impacts the growth of firm. Hence, CACI International can convert
customer satisfaction into loyalty by delivering effective services with the helps of talented
workforce. Along with this, distribution and sales network of the company is sound to the large
extent. Further, barrier to entry is another main strengths of the firm which in turn helps in
gaining competitive edge over others. Moreover, products which are related to the beauty aspects
have high level of customer loyalty. The rationale behind this, customers do not prefer to take
risk with their skin or beauty level. Hence, by making use of all such strengths business unit can
fulfill its aims and objectives.
Weaknesses: Increasing tax aspect is one of the main weaknesses of business enterprise.
Moreover, tax which is charged by the respective government has high level of impact on the
profit margin of firm. Moreover, tax significantly reduces the net profit and thereby growth of
the firm. Along with this, it is not possible for the business organization to make proper
estimation of the tax policies introduced by the government (Valentin, 2011). Due to such
changing tax policies financial position and performance of the firm is affected in a negative
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manner. Along with this, business unit is investing huge amount on research and development
activity which in turn influences the financial of the firm negatively (Miles, White and Munilla,
2016). Thus, business unit needs to place emphasis on finding highly profitable investment
which aid in the productivity and profitability aspect.
Opportunities: CACI international has opportunity to meet the growing demand of the
customers by introducing wide range of product or services. Moreover, now spending level of
the customers in beauty products and treatment is increased with the very high pace. In this
regard, by offering high quality innovative and quality products. This in turn helps company in
attracting the large number of customers and thereby sales revenue. In addition to this, CACI
needs to make focus on acquiring the high profitable companies. It enables firm to expand the
business operations and functions more effectively and efficiently (Miller, 2011). By this,
business organization would become able to widen its reach and thereby enhance both customer
base as well as gross margin. Thus, by grabbing all such opportunities business unit can make
contribution in the attainment of organizational goals and objectives.
Threats: From internal environmental analysis it has been determined that there are
several aspects which impose threat in front of the business organization. Now, rules and
regulations which are framed by the government is changing more frequently. Tax, licensing
policies etc. are the main aspects which have high level of impact on the overall framework of
the business organization. Business organization is operating in the many parts of the world.
Hence, uncertainty in relation to such aspect closely influences the strategies and policies of the
company to the significant level. Further, rise in the prices of raw material also have impact on
the cost, price and thereby profit as well. In addition to this, due to having global operations
company is facing problem in managing the risk level. The rationale behind this, in the strategic
business environment it is not highly possible for the firm to assess each aspect in the right
direction. Along with this, now interest rate charged by the financial institution on loan also
increased significantly. Hence, all such aspects highly affects the strategies and financial aspect
of the firm to the great level.
Hence, business unit needs to make focus on minimizing such weaknesses to the large
extent. Further, with the assistance of existing strengths White company would become able to
attain success at global level.
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PESTLE ANALYSIS
This is regarded as one of the important macro economic tool used in externally analyzed
the business performance. It is regarded as the standard framework that uses the current
performance of an individual entity which is further assessed on the different parameters
(Nieves-Colón, 2015). This tool is the used in determining the external impact on the internal
performance of the business. This is that business analysis tool used to affect the overall
capability of the industry or a particular nation. This analysis is conducted on the efficiency of
the nation from different angles in determining the actual market conditions of the Finland.
Political- The political factors includes all the rules and regulations framed by the government in
order to direct an entity in order to make their good decisions in the business. This sector will
showcase the overall market structure of the economy which helps in taking their decision. The
Finland is covered in the territory of European union as all kinds of the political decisions are
taken by the parties of the nations (Aithal, 2016). This country has benefited with the economic
freedom for the long time. The citizens of the nations will get appreciated by getting reliefs in the
freedom right, property, and freedom from the constitutional parties. The GDP of this country is
strong enough in order to steal the interest of the different business entity to establish their
business in this particular entity. In this country, great advantage is entertained by the different
business in order to start and operate their business without any kind of restriction. The freedom
of trade is another attractive feature of this particular place that enhances the level of the current
business by reduced tariff rates and less imposition of custom and excise duties. The tax policies
of the Finland are also beneficial for an enterprise as corporation tax is 26.5% which is less than
the normal business rates.
Economic- The economic factors of this particular country will affect the decision of an entity in
order to make good decisions in order to start the business in this country (Harrell, 2016). The
total population of this country is 5.3 million which shows the adequate base of the total number
of customers in order to initiate the business properly after catering the different needs of all
kinds of the customers. The economic growth of this particular country is 0.9% which is less but
improved with the passage of time. The per capital income of this country is around 35,427 per
capital income earned by every individual in this country. There is less unemployment in this
country which is around 6.4% which shows that the country is well equipped with different and
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strong business which is there to cater the needs of the society (Torres‐Rouff, Knudson, Pestle
and Stovel, 2015). The inflation rate of this kind of country is 3.9% which is quite normal rate as
this will not create any kind of burden on an entity with the current facts and figures. There is no
cash inflow of foreign direct investment in this country as there is external pressure created by
the foreign entity to spoil the existing business of a domestic owner.
Social- The social factors of a country is related with the culture, traditions, region lies in
country which creates unique identity of a country than another country exist in the whole world.
The growth of the population of this country has increases with 0.10% every year. The infant
mortality rate of this country are 3.47 deaths of infant per 1000 lives per births. The ethnic group
of this country is Finn, Swede, Russian, Estonian and Roman. The different persons who lives at
this place are from variety of countries. This ethnicity created by this country will able to
promote the social diversity. The inland is the nationality given to all the citizens who lived at
this particular place. The business entity who wish to establish their business entity in this
particular country are required to think about the variety of cultures. The different traditions and
the culture will create significant impact in the existing business who got exposed to the different
set of mentality of peoples (Harrell, 2016). This place is also regarded as that place which
respects different religion. The religion of a person is important to consider as the business needs
to give more stress on the religion of a customer while designing variety of goods and services
according to the religion of different entity. Another important matter is to evaluate the personal
characteristics such as language ability of people as every country has their own national
language. The uniqueness of the language need to be taken into account to initiate their business
proceedings without affecting an entity's performance based on these kinds of the factors. The
different changes take places in the business that affects an entity with the external market
changes takes places. The tastes and preferences of different customers is another important
methods used to evaluate the performance of an entity. The educational trend is also matter as
this judges the literacy level of the country which states that this country has equal proportion of
education among both the male and female person in the particular country (Aithal and Kumar,
2016). The average life expectancy of this country is around 17 years. The freedom policies
assigned for the labors in this country are flexible. The economic growth is higher in terms of the
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labor as they get relief in each and every terms as they cab access all their rights without any
kind of intervene.
Technical- The country has uses variety and innovative technology in order to amend their
existing business structure by automating their business functioning by using variety of
technology. The country has focuses on the research and the development technology by
nurturing their existing capabilities. The country officials have emphasized on the unique quality
of technology that nurtures the abilities of the country. The business who establishes their
business in this particular country (Khan, Alam and Alam, 2015). The Finland has good bulk of
information which are further processed by busing different variety of technology. The
economic officials have framed different innovation strategy which further helps an entity in
order to establish their business.
Legal- The country has focuses on the different variety of rules and the regulations that assist an
entity in order to operate their business properly such as variety of legislation. The country has
reliable set of legislation such as employment, health and safety regulations and the trade and
regulations standards imposed by an entity in order to reduce their overall pressure on a current
business entity.
Environmental- The business need to consider different variety of environmental factors that
assist the business entity in order to achieve their desired goals and the objectives within a give
time span (Pestle, 2015). The weather conditions of the country is cold and subarctic temperature
which is comparatively created moderate influence on the North Atlantic region. The another
issues which needs to be consider by this entity is created with the heavy influence of the air
pollution on this country. This kind of pollution is due to the existence of manufacturing and
different set of power plant exist in this particular country. The current country has alps
emphasized on the wildlife populations which is gradually decreasing due to the loss of habitats.
CONCLUSION
From the above report, it has been concluded that White company has several strengths
which in turn helps it attaining the competitive edge over others. Along with this, it has been
articulated that company has opportunity to widen its presence in the developing countries.
Further, there are several weaknesses which closely influence the growth and success of firm.
Hence, CACI international is required to take significant action or measure which in turn helps it
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in converting weaknesses into strengths. It can be revealed from the report that Finland country
prove to be more beneficial for the firm. Moreover, political condition of such prospective
country is highly supportive in terms of taxation and other support. Besides this, it can be
inferred that technical aspect of the country is growing with the very pace. Thus, by taking into
account such aspect it can be said that by entering in Finland while company can explore its
business operations and functions more effectively.
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REFERENCES
Books and Journals
Aithal, P. S., 2016. Study on ABCD Analysis Technique for Business Models, business
strategies, Operating Concepts & Business Systems. International Journal in Management
and Social Science. 4. pp.2321-1784.
Aithal, P.S. and Kumar, P.M., 2016. Application of ABCD Analysis Framework on Private
University System in India. International Journal of Management Sciences and Business
Research. 5(4). pp.159-170.
Harrell, L., 2016. British petroleum (BP): a critical analysis of its corporate and international
strategies. International Journal of Research in IT and Management. 6(3). pp.143-161.
Helms, M. M. and Nixon, J., 2010. Exploring SWOT analysis-where are we now? A review of
academic research from the last decade. Journal of strategy and management. 3(3). pp.215-
251.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A Critical Analysis of Internal and External
Environment of Apple Inc. International Journal of Economics, Commerce and Management.
3(6). pp.955-961.
Miles, M. P., White, J. B. and Munilla, L. S., 2016. Strategic planning and agribusiness: an
exploratory study of the adoption of strategic planning techniques by co-operatives. British
Food Journal. 99(11). pp.401-408.
Miller, S. H., 2011. Competitive Intelligence–an overview. Competitive Intelligence Magazine.
1(11). pp.1-14.
Nieves-Colón, M. A., and et.al., 2015, March. Comparison of aDNA yields from calculus and
tooth roots in pre-Columbian skeletal remains. In AMERICAN JOURNAL OF PHYSICAL
ANTHROPOLOGY (Vol. 156, pp. 236-236). 111 RIVER ST, HOBOKEN 07030-5774, NJ
USA: WILEY-BLACKWELL.
Pestle, W. J. and et.al., 2015. Hand-held Raman spectroscopy as a pre-screening tool for
archaeological bone. Journal of Archaeological Science. 58. pp.113-120.
TorresRouff, C., Knudson, K. J., Pestle, W. J. and Stovel, E. M., 2015. Tiwanaku influence and
social inequality: A bioarchaeological, biogeochemical, and contextual analysis of the
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Larache cemetery, San Pedro de Atacama, Northern Chile. American journal of physical
anthropology. 158(4). pp.592-606.
Valentin, E. K., 2011. SWOT analysis from a resource-based view. Journal of marketing theory
and practice. 9(2). pp.54-69.
Online
SWOT analysis of CACI international. 2016. Online. Avaiable through:
<http://www.swotanalysis24.com/swot-c/18519-swot-analysis-caci-international-inc.html>.
[Accessed on 17th December 2016].
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