Report: Global Business Environment Analysis for Manufacturing Sector

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This report provides an overview of the global business environment's influence on the manufacturing sector from September 2017 to the present. It examines various factors impacting the sector, including technological changes, political and economic conditions, and competition. The analysis utilizes Porter's Five Forces model to assess competitive threats, such as the threat of new entrants, substitutes, and the bargaining power of customers and suppliers, as well as industry rivalry. Furthermore, the report explores Porter's generic strategies, including cost leadership, differentiation, and focus strategies, to understand how companies can gain a competitive advantage in the manufacturing sector. The report concludes by highlighting the dynamic nature of the global business environment and its implications for strategic decision-making within the manufacturing industry.
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Present An Overview Of The Global
Business Environment Since September
2017 To Date For A Specific Industry
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Table of Contents
TITLE..............................................................................................................................................3
REFERENCES................................................................................................................................5
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TITLE
Present An Overview Of The Global Business Environment Since September 2017
To Date For A Specific Industry.
The environment in which a company is operating its business is known as Global
business environment (Global Business Environment. 2018). There are various factors by which
global business environment of company influenced such as geographic location, politics,
technology, culture and economic status. In this report, effect of global business environment on
manufacturing sector since 2017 is discussed.
Since September 2017, manufacturing sector faced technological changes. Political and
economical factors also up heals the manufacturing sector in threat. By using Porter's Five forces
model competition of manufacturing sector is discussed here. Porters five forces model is used to
analyse the threats of competition (Barnwell, 2014). Here, five threats are discussed
Porter's five forces model
Threat of new Entrants
Since manufacturing sector faced technological changes and the technology used by a
company in manufacturing sector has high cost, then the risk of entering new companies are very
low. Because of high cost, a new company has threat to come in this sector, whether it will be
successful or not.
Threat of substitutes
Due to significant changes in the technology, all the rivals opt to change it frequently.
This will create moderate risk to manufacturing sector as all the existing companies are using
same technology.
Bargaining power of customers
Customers can use their bargaining power when they have majority among the companies
which are manufacturing the same products. This power in manufacturing sector creates low risk
because as the number of customers increases, the risk of competition decreases. This will create
low risk to the manufacturing sector (Kourie, 2014).
Bargaining power of Suppliers
Suppliers use their bargaining power when the number of suppliers are less as compared
to the customers. If the number of suppliers are less, they will provide whole raw material and
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thus the decision of cost is in their hands. Therefore, the competitive risk among the companies
in manufacturing sector is low.
Industry rivalry
Since, industry rivalry is the competition among the companies producing same product.
In the manufacturing sector, the same technology is used by all existing rivals therefore it has
high risk among the competitors.
Porter's generic strategies
These strategies are used to increase the sale done more than rivals. In other words, it is
used to gain competitive advantage (Kasemsap, 2016). There are three strategies by which
competitive advantage can be achieved:
The Cost Leadership Strategy
This leadership focuses on minimizing the cost of products delivered to customers. In the
manufacturing sector cost of products can be decreased by cutting of inventory cost and reducing
the time to deliver. This theory help the manufacturing sector company to gain competitive
advantage.
The differentiation Strategy
This theory focus on producing different products from the competitors. The
differentiation is done by implementing unique products, producing quality and delivering the
product within time (Botha, 2014). In this way, this theory helps companies to gain the
advantage of market sale in manufacturing sector.
The Focus Strategy
This strategy is used to focus on unique needs of customers, preparing a niche market and
developing low-cost well specified products. This strategy helps the company in manufacturing
sector to focus on the needs of customers and deliver the product accordingly.
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REFERENCES
Books and Journals
Barnwell, D., and et. al., 2014. Leadership of international and virtual project
teams. International Journal of Global Business. 7(2).
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
Kasemsap, K., 2016. The role of social networking in global business environments. In Social
media and networking: Concepts, methodologies, tools, and applications (pp. 1635-
1653). IGI Global.
Online
Global Business Environment. 2018. [Online]. Available
through:<http://www.icmrindia.org/courseware/Global%20Business
%20Environment/Global%20Business%20Environment.htm>.
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