Global Business Environment: Iceland Market Analysis and Impact Report

This report conducts a market analysis of Iceland, evaluating its global business environment. It begins with an introduction to the global business environment and then moves into a SWOT analysis of Iceland, identifying its strengths, weaknesses, opportunities, and threats. The report also includes an operational impact analysis, examining how various factors, such as economic and political instability, affect business operations and finances. The analysis considers the impact of capitalism, democracy, social unrest, and political changes on the business environment. The report highlights challenges related to finance, taxation, and environmental concerns, providing a comprehensive overview of the market conditions and their implications for businesses operating in Iceland. The conclusion emphasizes the importance of market verification and the need for businesses to understand the global business environment.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PORTFOLIO PAPER 2...................................................................................................................3
SWOT analyses...........................................................................................................................3
PORTFOLIO PAPER 3...................................................................................................................4
Operational impact analysis.........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment is the environment of the organization in different foreign
countries with external factors of the organization that influence the making of decisions on
utilization of resources and abilities. This report will conduct market analysis of Iceland and
evaluates the impacts of analysis on its business operational functions.
MAIN BODY
PORTFOLIO PAPER 2
SWOT analyses
It is a tool which is used to recognize internal factors that can affect organization (Sarsby,
2016). In Iceland, SWOT analyses will research the interrelations of strategic abilities and the
inspiration of external environment that is analysed to make appropriate decisions for the future
of organization.
Strengths- Iceland has strength of instantly recognizing the market current trends and serve
accordingly to perform efficiently. The company is a well-known chain of British supermarket
located in wales has strong market penetration of low abundance areas which supports the
organization to challenge rivals. It was awarded for being a top retailer of frozen foods by the
British food federation awards, its brand name is compatible with value that energizes its
products to be on top of the customer preferences and accomplish customer expectation by
providing satisfactory prices (Phadermrod, Crowder and Wills, 2019). Its constant innovation
makes it dissimilar from other competitors and products with special private label attract
customers towards the store. The organization has strong brand image in British that concerns
high reputation and a great strength to sustain in the market. Organization has substantial
network of distribution in the abundant areas where targeting customer is very easy. The
company also hold effective presence online which is becoming very sufficient for online
shopping. It also has micro influencer network portfolio that displays Iceland’s reasonable
products through different forms on social media (Vlados, 2019).
Weaknesses- It has a huge weakness for which it suffers a lot that is its customer’s comments
negatively on its frozen products. The company has lack of premium range products for high
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affluent customers. Iceland has very small stores when compared to its competitors which puts
negative effect on customers who prefer high standard stores and one stop shopping over UK.
There is also a lack of geographical presence that keeps store backward from other rivals and
affects its market share
.
Opportunities- Iceland has an opportunity by capitalising on the modifying habits of buyers and
their ideologies. It has effective scope of expansion in other countries where it can provide and
setup a store that can be reliable for the market of the chosen country. There is an opportunity for
Iceland that the consumers are gaining interest in frozen food because it gives longer shelf so this
scope can let company to grow its business by providing food that is demanded by the
consumers. Iceland has opportunity to grow strong image in the markets of Europe where it can
have monopolistic power of being an one and only supermarket to provide frozen food
Threats- Iceland was having a threat of political and economic instability with the Brexit. It has
a threat of maximization in taxation and changes in the policies of government. Iceland may face
a threat of financial dip because it is unable to cope up with minimum up gradation in wages
where the hike in salary was risen and minimum amount of wage maximized by £2 from 2015.
PORTFOLIO PAPER 3
Operational impact analysis
It is done when an organization plans for growth within the country and globally and first
analyse all kind of effects on its business.
Impact on operations and finance
Imbalance between capitalism and democracy is the main problem for Iceland operations.
Democracy is very low and inequality is the prime reason which could impact the lower range
operations of the company. Facing a big deal of social unrest could impact effectively because of
heavy unemployment the operations could not work as per the requirements (Huck, 2017). Low
growth economy is the effective reason that can stop operations to perform with its strength in
order to gain competitive advantages in emerging economies. The future in the world economy
lies reliable in terms of values, motivation, human capital and the great quality of its perceptions.
Every business need capitalized banks which can lend money to SME’s and consumers to
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perform with its possible efficiency. Irresponsible fiscal policies impacts on the finance
department of Iceland that are too heavy to handle and bonds with government are very low by
which the company has fear of losing its property of work for not tackling government policies
with a serious attitude. Political changes impacts heavily on the finances because the government
cannot implement reforms and corruption takes place. The inevitable maximization of pollution
level pauses the operations very heavily because customers avoid travelling in the increased bad
environment. These all impacts heavily on the environment of business and can leads to lower
the market shares in the economy and company can suffer heavy loss in the operations and
finance. The firms cannot to secure financing to buy necessary materials for the products because
of taxes and crisis in banks. Debt crisis and political issues impacts both the segments in its own
ways and consider the essential changes to be made to survive in the society to achieve long term
sustainability. Many businesses are highly impacted by the global environment that refers to the
international and local communications which are uncontrollable and inspire companies to
operate. The effects of this environment on businesses can break into general and task
environment (Li and et.al, 2019). The commodity prices were moderated and pressure was
getting increased and there were no chance of recoveries for the business to durable in the
country. Growth was getting very hard day by day over there and problems of debt were
developing a lot for Iceland. The country was having more restrictions on fiscal spaces so that
the company was unable to perform in the actual manner and it was effecting heavily on its
operations and finance conditions. There was also a threat of being collapsed by the government
for not giving taxes on time. Borrowing cost is not distributed and competitiveness was
increasing for those who have maximum capital to invest as per the high demands.
CONCLUSION
The above report concludes that an business needs to verify all the segments of market to
maintain global business environment and consider necessary requirements that are profitable for
organization. Iceland has performed Swot analyse to understand its strengths and weaknesses
along with knowing its opportunities and threats to better understand its chance of growth. It is
also concluded that operational impact analysis has to be done for further evaluations.
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REFERENCES
Books and Journals
Huck, C.W., 2017. Theoretical and technical advancements of near-infrared spectroscopy and its
operational impact in industry. NIR news. 28(8). pp.17-21.
Li, B., and et.al., 2019. Research on modal analysis method of CNC machine tool based on
operational impact excitation. The International Journal of Advanced Manufacturing
Technology. 103(1-4). pp.1155-1174.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
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