Literature Review: Strategic Analysis of World Remit Company

This literature review provides a comprehensive analysis of World Remit, a digital payment service facilitating international money transfers. It covers general information about global remittance and employs frameworks like PESTLE, SWOT, and Porter's Five Forces to evaluate the company's strategic positioning and competitive environment. The review identifies World Remit's strengths, weaknesses, opportunities, and threats, while also exploring relevant theories such as the labor process theory and corporate social responsibility to understand the company's performance and social impact. The report concludes by highlighting the importance of strategic frameworks in business analysis and decision-making, emphasizing the need for organizations to adapt and compete effectively in the international market. Desklib provides access to this and many other solved assignments to aid students in their studies.

Literature Review
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Table of Content
INTRODUCTION.....................................................................................................................4
MAIN BODY
General information about remittance on the global basis........................................................4
PESTLE analysis of World Remit............................................................................................4
SWOT analysis of World Remit..............................................................................................6
Porter’s five forces of World Remit........................................................................................7
Strategic analysis of World Remit company ..........................................................................7
Theories incorporating the performance of company..............................................................8
CONCLUSION.......................................................................................................................8
REFERENCES........................................................................................................................10
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Executive Summary
The overall report is based on the literature review about World Remit company. The report
consist of genral information about remittance at the global level and also about the certain
frameworks in order to show some contradictions into the findings. In addition to this, the report
will cover analysis about the identification of strategic points. Moreover, the report will cover
discussion about certain theories which help the organisation in order to take appropriate
decision.
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INTRODUCTION
Environment of business basically refers to the factors which has effect on the operations
of company and it includes customers, competitors, industry trends, stakeholders, suppliers and
technological development as well. It is important because to make aware about the actions and
strategies of the competitors as well(Vargas-Silva., 2016). In the present report, World remit
company is taken into consideration. World remit is a digital payment service which provides
facilities of international money transfer and remittance services into more than 130 countries
and over seventy currencies as well. The present report will cover discussion about general
information about remittance at the global level and also about the certain frameworks in order to
show some contradictions into the findings. In addition to this, the report will cover analysis
about the identification of strategic points. Moreover, the report will cover discussion about
certain theories which help the organisation in order to take appropriate decision.
MAIN BODY
General information about remittance on the global basis
According to Bharati basu,(2015) international remittance payment refers to the amount
sent through the immigrants to their families and friends in their countries of home. These are the
payment which provides a significant resource of income thaty is used in the case of providing
different basic requirements of non-migrating people of the families which are immigrant. The
payment of remittance also act as the tool for reducing the level of poverty of the labour
sending countries(International remittance payments and the global economy). It can also be
utilised for the purpose of accumulation of assets through certain countries and familieswhich
constitute as the funds part at foreign level which comes int o the country(Fromentin., 2017).
According to the report of world bank, it has been observed that remittances at global level are
projected to decline sharply through about twenty percent in the year of 2020 due to the
economic crisis which has been used by the COVID-19 situation.
PESTLE analysis of World Remit
Political Factors: These are the factors which plays a very important role for determining the
factor which has an impact on the World Remit profitability of company’s long term in a
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particular market or country (Squires and Amico., 2015).The World Remit company has to
evaluate particular factors before investing or entering into new market. These factors basically
include risk of military invasion, political stability, legal framework for contract
enforcementlevel of corruption.
Factors at economic level: There are different factors at macro environmental level like
inflation rate, savings rate, economic cycle and foreign exchange rate which determines the
demand and investment in an economy. There are certain factors at economic level which World
remit company has to taken into consideration while having this analysis(Pochyla., 2016). It
includes type of government intervention in the free market, economic system in countries of
operation, efficiency of financial markets, exchange rates and quality of infrastructure in credit
service industry.
Social Factors: Social culture and the way of doing things has an impact on the organisational
culture within the environment. For this analysis, fators at social level which leadership of World
Remit should evaluate. It includes skill level of the population and demographics, education
level and culture, class structure.
Technological Factors: Across the board it has been observed that technology is very fast
disripting. From this analysis, a firm not only requires to do analysis of technology of the
industry but also it is about disrupting the industry at the fast pace for the technology(Yang and
et.al., 2020). The analysis of technology basically involves understanding of following impacts
which include impact on the cost structure in credit service industry, rate of technological
diffusion and technology’s impact on the product offering.
Legal Factors: There are different countries where institutions and legal framework are not
enough for protecting the rights of an organisation of intellectual property(Rodima-Taylor and
Grimes, W. W., 2019). There are some of the factors at legal level which leadership of World
Remit needs to taken into consideration while taking entey int othe new market. It includes
discrimination law, anti trust law, copyright, consumer protection and employment laws as well.
Environmental Factors: There are number of markets that have dissimilar norms and
environmental standards which has an impact on the profitability of an organisation in those
markets. When new business has been started or before entering into market at existent level the
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firms has to carefully analyse the standards of environment which are required in order to
operate into those markets(Lambert and Carr., 2018). There are certain factors at environmental
level which a firm should consider and it includes climate change laws regulating environmental
pollution recycling and weather as well.
So Pestle analysis is helpful for World remit in order to have information about the business
direction and their brand positioning, risks and growth strategies as well.
SWOT analysis of World Remit
STRENGTHS: World Remit is the company which has more than thirty seven thousand reviews
of individual customers which makes them most reviewed website as well for online money
transfer companies into this industry(Nurse.,2016). It is also used by number of people in order
to send, receive or store money in a range of currencies with support of world Remit app. The
company has 800,000 customers who use it in order to send money into more than 50 countries
WEAKNESSES: There are certain weak points of World Remit company which is not always
the cheapest provider. It has been observed that the majority of fees are buried non-transparent in
exchange rates.
OPPORTUNITIES: World Remit is cheaper in terms of fees as compared to other Western
Union company and also have better exchange rates as well. They are also using network of
banks, telecom operators and mobile wallet providers on the world wide basis. The company has
also agreement with service of instant messaging Whats app which notifies people on the real
time basis when they have been sent money(Giungato and et.al., 2017). They are also going
towards increasing the system on the digital basis due to which they can perform into more better
manner for providing services.
THREATS: There are certain new players which can give tough competition into market and
there are increasing chances of presence of frauds and scams as well (Mannan., 2015). There are
major competitors of World Remit which include Zoom, Western Union, United States portal
service. It has been observed that there are certain incidents such as scams deteriorates the stocks
into drastic manner.
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So SWOT analysis help in terms of identifying the strengths, weaknesses, opportunities and
threats of World Remit company(World Bank, 2015). This analysis help the company in terms of
improving themselves into positive manner and take decisions accordingly for it.
Porter’s five forces of World Remit company
 Threat of new entrants: When innovation has been done regarding the services and
products which gives a reason to the old customers to buy products of World Remit and
but also brings new customers as well (Gazieva., 2020). Scale of economies can be build
up so that fixed cost per unit can be lower down.
 Suppliers Bargaining power: Dominant postition is for those who are suppliers can
lower down the margins of World Remit company can earn in the market. The World
Remit company can build their supply chain into efficient level with suppliers at multiple
level and through experimenting with products design so that when prices has increased
of single raw material then it shifts to another one.
 Buyers bargaining power: Buyers are basically demanding in terms of nature so they
want to buy best offerings which is available through paying the minimum price as
possible. It basically puts pressure on the World Remit company in terms of long run.
The smaller and more powerful the customer base is of World remit company the higher
the bargaining power of customers and higher the ability to seek increasing profits and
discounts as well(Kuo., 2018). They can handle the customers through building the large
base of customers which will be helpful into various terms.
 Substitute products and services threat: When new service meets the similar customer
needs into different ways then industry profitability get suffers. Threat of substitute
products and services is higher in that case when it offers a value proposition which is
uniquely different from present offerings of the industry(Taraku and Duçi., 2018). The
world remit company tackles the customers through being service oriented rather than
just product oriented. It can be possible through understanding the core needs of
customers rather than what customer is buying.
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These porter’s five forces are helpful in such a way that it understands the main competitive
forces at work in an industry. It also help in terms of assessing the attractiveness of the industry.
Strategic analysis of World Remit company
According to Pramod Borasi (2022)Strategy basically considers certain factors which
include internal, external and competitive. Strategy basically examines about recent company
service performance which considers certain parameters(Remittance market outlook-2030). It
includes profits, growth, investment, market share, productivity. In addition to this, it includes
competitors, staffing, technological development branding and practice (Nakije., 2021). There
are certain strategies adopted by the World Remit company which includes setting the pricing
strategy, generating customer value through lifecycle. In this manner, World Remit company has
adopted different strategies in order to stand competitively into the market.
Theories incorporating the performance of company
There are certain theories which incorporates the performance of company into positive
manner which is defined into the following manner:
Labour process theory: It is the theory which has relationship with analysis that in which
manner the work force power of labour is directed in terms of commodities and services
production that can be sold out at profit level(Moreno-Sanchez and et.al., 2018). Manager seek to
control the pace of work, the way of work is organised and work duration because these are
challenging to the profitability. In context to World Remittance company, the employees also
work in such a manner that they are directed towards generating Major revenue and profits for
the company into positive manner.
Corporate social responsibility: CSR is basically a self regulated model of business which
helps the company in order to be socially accountable to itself, public and stakeholders as
well(Tsani., 2021).Engaging into responsibility at social corporate which means that organisation
should be operated into such a manner that it enhances the society and the environment instead
of contributing into negative manner to them. In context to World Remittance company, they
work towards the environment and take actions or steps towards protecting the environment into
positive manner. These are the main CSR activities which has been followed by World
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Remittance company(Riedler., 2017). These are the theories which are beneficial for the growth
and development of World Remittance company into positive manner.
CONCLUSION
The above stated report concludes that business plays a very important role for the
growth of an economy. It has been concluded that to analyse organisation activities and their
decision making, there are certain frameworks which are very significant in order to evaluate the
environment of business into appropriate manner. Every organisation has adopted certain kinds
of strategies so that they can stand strongly and competitively into this international market. It
has been determined that there are certain theories which are helpful in terms of incorporating
the performance of company into positive manner. So its very important to consider these
frameworks and theories into serious manner so that they can decide their further action into
appropriate manner. That’s why analysis and evaluation of the company is very necessary for
further growth and development into positive manner.
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REFERENCES
Books and Journal
Vargas-Silva, C., 2016. Literature review: remittances sent to and from refugees and internally
displaced persons. KNOMAD Working Paper, 12.
Fromentin, V., 2017. The long-run and short-run impacts of remittances on financial
development in developing countries. The Quarterly Review of Economics and Finance, 66,
pp.192-201.
Squires, A. and Amico, A., 2015. An integrative review of the role of remittances in international
nurse migration. Nursing: Research and Reviews, 5(1), pp.1-12.
Yang and et.al., 2020. Does the inflow of remittances and energy consumption increase CO2
emissions in the era of globalization? A global perspective. Air Quality, Atmosphere &
Health, 13(11), pp.1313-1328.
Lambert, N. and Carr, S., 2018. ‘Outside the Original Remit’: Co‐production in UK mental
health research, lessons from the field. International Journal of Mental Health Nursing, 27(4),
pp.1273-1281.
Giungato and et.al., 2017. Current trends in sustainability of bitcoins and related blockchain
technology. Sustainability, 9(12), p.2214.
Gazieva, S., 2020. DIGITALIZATION OF LABOR MIGRATION IS A NEW AGENDA FOR
MIGRANTS’CONTRIBUTIONS TO SOCIETIES OF THE WORLD. Архив научных
исследований, (22).
Taraku, E. and Duçi, E., 2018. Determinant Factors of Remittances in Albania. Economic
Research, 2(12), pp.1-12.
Nakije, K., 2021. The Causal Link between FDI and Remittances in Kosovo, Switzerland, and
Denmark. Comparative Economic Research. Central and Eastern Europe, 24(2), pp.45-68.
Tsanis, K., 2021. FinTech Strategies in the GCC: Developing a Growing FinTech Ecosystem–A
GCC Perspective. In Research Anthology on Concepts, Applications, and Challenges of
FinTech (pp. 94-106). IGI Global.
International remittance payments and the global economy,2022 [Online] Available through:<
barnesandnoble.com/w/international-remittance-payments-and-the-global-economy-bharati-
basu/1117346330/>
Kuo, M. F., 2018. Jinxin: the remittance trade and enterprising Chinese Australians, 1850–1916.
Mannan, D. K. A., 2015. Remittance model: a study of developing country in
Bangladesh. International Research Journal of Business and Social Science, 3(3).
Moreno-Sanchez and et.al., 2018, April. Mind your credit: Assessing the health of the ripple
credit network. In Proceedings of the 2018 World Wide Web Conference (pp. 329-338).
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Nurse, K., The Diasporic Economy, Trade and Entrepreneurship in the Caribbean: Remittances
and Money Transfer Market.
Riedler, T., 2017. Migrant remittances: can electronic payment systems like bitcoin improve
conditions of international money transfer? (Doctoral dissertation, MS thesis, Berlin School of
Economics and Law, Berlin, Germany).
Rodima-Taylor, D. and Grimes, W. W., 2019. International remittance rails as infrastructures:
Embeddedness, innovation and financial access in developing economies. Review of
international political economy, 26(5), pp.839-862.
World Bank, 2015. Somaliland's Private Sector at a Crossroads: Political Economy and Policy
Choices For Prosperity and Job Creation. The World Bank.
Online
Pochyla, M., 2016. International Remittances and New Technologies. Information Technology
for Practice 2016, p.251.
Remittance market outlook-2030,2022 [Online] Available through:<
https://www.alliedmarketresearch.com/remittance-market/>
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