Global Business Strategy Report for Qatar First Bank and Apple Inc.

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This report presents a comprehensive analysis of a market analyst's role within a small investment bank, Qatar First Bank, focusing on the potential investment in Apple Inc. The analysis includes a review of the micro and macro environments of Apple using SWOT and PESTLE analysis, respectively. The report also explores the impacts of the international business environment on Apple, discussing the benefits, opportunities, and challenges of globalization. It further examines the extent of globalization on organizations and structures of different organizations operating in international markets. The study provides insights into the market dynamics, investment potential, and strategic considerations for Qatar First Bank in its investment decisions.
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Running head: GLOBAL BUSINESS STRATEGY
GLOBAL BUSINESS STRATEGY
Name of the Student
Name of the University
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1GLOBAL BUSINESS STRATEGY
EXECUTIVE SUMMARY
The following paper will delve deep into the job role of a market analyst of a small investment
bank in Qatar and the possibilities of investment in a well-established international organization.
The internal and external business environment of the chosen organization will be understood by
analyzing them with relevant analysis tools. The effect of globalization on the concerned
business organization is discussed and the international operations of it understood thoroughly.
The main responsibility of the market analyst is to understand the market scenario of the
business in which the employer deals with, and to provide feedback to the employer in order to
maximize profits and revenue.
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2GLOBAL BUSINESS STRATEGY
Table of Contents
ACTIVITY 1.................................................................................................................................................4
INTRODUCTION.........................................................................................................................................4
DISCUSSION................................................................................................................................................4
A) A REVIEW OF THE TECHNIQUES..................................................................................................5
MICRO ENVIRONMENT....................................................................................................................5
SWOT ANALYSIS...............................................................................................................................6
MACRO ENVIRONMENT...................................................................................................................7
PESTLE ANALYSIS.............................................................................................................................7
B) ANALYSIS OF THE MICRO AND MACRO ENVIRONMENTS OF THE BUSINESS.................8
MICRO..................................................................................................................................................8
MACRO.....................................................................................................................................................9
C) ANALYSIS OF THE IMPACTS OF INTERNATIONAL BUSINESS ENVIRONMENT..............10
D) BENEFITS, OPPORTUNITIES AND CHALLENGES OF GLOBALISATION.............................11
E) THE EXTENT OF GLOBALISATION ON ORGANISATIONS.....................................................11
F) STRUCTURES OF DIFFERENT ORGANISATIONS OPERATING IN INTERNATIONAL
MARKETS..............................................................................................................................................12
CONCLUSION............................................................................................................................................13
REFERENCE:..............................................................................................................................................14
ACTIVITY 3...............................................................................................................................................17
INTRODUCTION.......................................................................................................................................17
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3GLOBAL BUSINESS STRATEGY
INTERNATIONAL OPERATIONS OF APPLE........................................................................................17
CONCLUSION............................................................................................................................................19
REFERENCES:...........................................................................................................................................21
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4GLOBAL BUSINESS STRATEGY
ACTIVITY 1
INTRODUCTION
Small investment banks are the banks, which operate in a smaller level than the
multinational full-fledged banks that are much bigger in scale in terms of financial transactions
(Stowell 2017). These banks are specialized in one or two facets of investment. The process is to
manage wealth of clients and provide financial assistants to small players in the market. These
institutions also invest in profit making companies to create wealth and grow in terms of scale
and operations. Small investment banks largely work on smaller arrangements including mid
market organizations, and as a rule help on the offer side in mergers and acquisitions exchanges.
Also, they some of the time work in specific enterprises, for example, media, medicinal services,
industrials, innovation or vitality. A few banks may represent considerable authority in specific
sorts of exchanges, for example, capital raising or mergers and acquisitions, or rebuilding and
rearrangement (Hakenes et al. 2014).
A market analyst’s main activity is to ponder data to enable the employer or customer to
settle on educated choices about their market. This could go from what markets to dispatch an
item in, to the value one may charge for something. The data analysis of a market analyst could
be introduced as numbers or words. Factual aptitudes are helpful – maths and examination
capabilities are additionally qualities of a market analyst.
DISCUSSION
The small investment bank in which the appointment as market analyst has been achieved
is Qatar First Bank. The bank mentioned was launched in 2009 when there was recession in the
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western world (Al Marri 2018). However, because of rich natural resources and never ending
demand of oil throughout the world, the Middle Eastern countries did not face any tough time
(Niblock 2015). Many of the stakeholders and investors in the bank were having great suspicion
in their mind about success of the bank. In spite of such suspicion and doubt the bank came out
to be successful, and today it is engaged in offering international standard Shari'ah agreeable
“wealth management” techniques to people who are affluent in Qatar and the locale. A bank that
would benefit from the developing interest for Islamic banking and be one stop solution in
monetary accomplice to the youth as well as business visionaries, in the safeguarding and
development of their riches (Al Marri 2018).
The internationally operating organization, which is chosen for an investment opportunity
from the small investment bank, is Apple, which is one of the most successful brands in
operation throughout the world (Thaon and Tsanthaiwo 2017). The company manufactures
mobile phones, laptops, and desktops. The company is the manufacturer of the famous i-phone.
A) A REVIEW OF THE TECHNIQUES
MICRO ENVIRONMENT
Micro environment is the internal environment of a business. The micro environmental
condition, as can be understood from the name itself, is the immediate and immediate condition
which affects a business organization. The “micro environment” incorporates thoughts identified
with providers, clients and nearby partners, along with the factors that are internal to the business
(Epstein and Buhovac 2014). The “micro environment” condition can for the most part be
viewed as the immediate situations of the business and the owner is expected to give some
amount of thought to the impacts of the micro environment on business (Sekaran and Bougie
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2016). The technique that is used in analyzing the micro environment of a business is called
“SWOT analysis”, or the “Strength, Weakness, Opportunity, Threat, analysis” (Grant 2016).
SWOT ANALYSIS
Organizations use this tool to find out the strength & weakness they possess, and
opportunities & threats that may come across (Drucker 2017). The main benefit of this system
lies in the fact that it requires very less investment to be conducted. Even small businesses can
undertake and go ahead with SWOT analysis of their businesses. SWOT analysis helps in
comprehending ones business in a better way, and tackling the weaknesses so that they get
resolved (Sekaran and Bougie 2016). Threats are averted from getting critical by prior
predictions. The opportunities are understood and they are sharpened to give better results.
Knowing the strength of oneself better gives extra confidence to go ahead. The whole process
gives a direction to the business and anchors it.
Apart from the number of benefits SWOT analysis has, it has some limitations and
disadvantages as well. This is not a very intricate process and remains mostly in the superficial
level. For situations and problems, which are, complicated further researches which are deeper
and in-depth needs to be done (Storey 2016). The process often does not categorize issues
according to priority. It offers lesser amount of solutions than required. It is a process, which
produces a lot of information and ideation, but not all are very useful.
This is a suitable method for deciding on the inner environment of a business because of
its wide span of compatibility with any kind of business possible.
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MACRO ENVIRONMENT
Macro environment is the external environment of a business on which the decision
makers of the business has no role-play in (Armstrong et al. 201'5.) These are the large scale
factors which are uncontrollable and cannot be influenced by the inner players of the business
environment. These factors impact the decision making of the organizations and positively or
negatively impact the performance and business activities of an organization. Macro
environment can be analyzed by PESTLE technique, which has full form of “Political,
Economic, Social, Technological, Legal, and Environmental factors” (Feys and Probert 2015).
PESTLE ANALYSIS
All the factors considered in the PESTLE analysis are external to the business and
doesn’t have a scope of direct control by the business authorities. However proper PESTLE
analysis would give a clear picture of what can be the scenarios that are forthcoming and the
management can necessary steps and actions to keep the business stable after such analysis
(Aithal 2016). The first advantage of the process is its cost effectiveness. It does not require any
special mechanism and only some investment of comprehension from experts. The analysis gives
a deeper understanding of the situation and the external environment and the possible impacts
they can pose on the business. The political interference and governmental decisions which
impact businesses cannot be changed or altered by the businessmen, they can adapt their own
business according to the new scenarios (Walker and Rea 2014). It is the same case with other
factors of PESTLE technique.
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B) ANALYSIS OF THE MICRO AND MACRO ENVIRONMENTS OF THE BUSINESS
MICRO
SWOT ANALYSIS OF APPLE INC-
STRENGTH- Apple is the leader in its field and the company which continuously
innovates new products and brings new technological up gradation to its existing products.
Because of these reasons, Apple products are always in demand and there is no fear of loss in
investing in the company (Heracleous 2013). The profit margins of Apple Inc are stable and
high, and the investors can depend on the goodwill of the company (Khan, Alam and Alam
2015). Apple enjoys high level of trust and reputation in the market it operates in.
WEAKNESSES- Apple is greatly dependant on iPhones for maintaining its goodwill and
revenue. In overall scenario, Apple deals with very less number of products, which makes it
dependant on their success (Khan, Alam and Alam 2015). Every year, updated version of iPhone
is released and avid iPhone users wait for new iPhones to get released (Dong and Zhang 2016).
However the updates are not always well received. The Apple products are most of the time not
compatible with products of other companies, which makes them lesser popular.
OPPORTUNITIES- Apple has a huge manufacturing infrastructure, which is highly
advanced and technologically ahead of many of its competitors. The company is ever expanding
its distribution network, however presently its distribution network is one of the strongest in the
industry (Fitzgerald and Wakabayashi 2014).
THREATS- The field in which Apple operates in have stiff competition from various
quarters. Microsoft is its competitor in desktop and operating system business. Samsung is a
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close competition in the business of mobile handsets. Samsung and Google have collaborated in
providing service which is a great competition to Apple.
MACRO
PESTLE ANALYSIS OF APPLE INC
POLITICAL- Apple is largely reliant on the manufacturing units at China. China is a
country, which is dominated by Communist political ideology, which is often dominated by anti
capitalist movements. In America, with recent political developments, there is a clamor about
discontinuing outsourcing of jobs and manufacturing from the country. Apple works in a number
of countries, which are not politically stable, which could make the future of business of Apple
unsure in these countries.
ECONOMIC- As it has been pointed out previously that Apple’s manufacturing units are
based mainly in China, but with increasing labor cost in China economical thrust is felt in the
pricing of Apple products as well. The economic recessions in various countries throughout the
world has reduced income of many people, which has affected the consumer base Apple.
SOCIAL- Socially Apple as a brand is seen to be a status symbol in the western world.
However in African countries or in the countries where the goodwill and market of Apple is not
well established it can be seen as a product with too high price and hence abandoned. A large
section of people in North America cannot except China as a friendly country which can hamper
goodwill of Apple because of its close association with the country.
TECHNOLOGICAL- Google, Microsoft, Dell, Samsung, HP, and a number of
companies are doing regular advancement in their technological sphere. Apple is doing its own
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bit in technologically upgrading its product, but many of its recent innovations are criticized like
the wireless earphones, which has a high probability of getting lost.
LEGAL- Apple has recently ventured into advanced digital financial services called the
Apple Pay. This brings further financial regulations and implications to Apple throughout the
globe. Dependency of Apple on intellectual products for its income like music and software
make Apple furthermore vulnerable to legalities.
ENVIRONMENTAL- China is a country that is tackling environmental pollution.
Apple’s manufacturing units have a high amount of disposed wastages, which is posing
increasing concern in the country.
C) ANALYSIS OF THE IMPACTS OF INTERNATIONAL BUSINESS ENVIRONMENT
Apple deals in electronic goods and gadgets especially phones, laptops and computers.
With increased globalization and digitization, every individual is opting for better gadgetry
support. Apple has been one of the pioneers in bringing technology at its best to the consumers.
Steve Jobs, Steve Wozniak and Ronald Wayne established Apple Computer Company on April
1, 1976. The organization's first item was the Apple I, a PC built by Wozniak without any
assistance from anyone else. The company has stiff competitors working in similar field, many
of the collaborating with each other. Microsoft, which is probably the greatest competitor of
Apple, was found just a year before, in 1975 by Bill gates and Paul Allen. Apple has its own
operating system for desktop, which is having a huge competition from Microsoft Windows.
Apple presently has 12.37% market share on the market of Operating System, and Windows has
11.79% (Gartner.com 2015). Samsung and Apple have collaborated to take a market share of
54.16%, which is largest (Gartner.com, 2018). Therefore, Apple works in an international
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business environment, which is full of competition and requires continuous innovative
advancements. Coming in of new players with lower rates, and existing players increasing their
innovative quotient has a great impact on Apple’s business.
D) BENEFITS, OPPORTUNITIES AND CHALLENGES OF GLOBALISATION
Globalization and innovation have both astoundingly affected organizations in many
ways. Globalization alludes to growing a business to work at the worldwide level. This is
frequently made conceivable because of the propelled innovations being declared each day.
From multiple points of view, globalization and mechanical advances have enhanced business;
however, there are likewise negative impacts. Globalization has helped Apple is marketing and
distributing its product throughput the world. Apple has a vast chain of stores and retail outlets in
all the big cities throughout the world. This was made possible by economic globalization and
foreign direct investment opportunities. Apple has been a forerunner in importing and exporting
activities and outsourcing various jobs in the Asian job market. Apple has more than 450 retail
shops in 13 countries. The marketing of its initial successful product mainly depended on the
foreign job markets. Apple has been mainly operating its manufacturing units at China.
Globalization of culture has created a fetishism of Apple brand, which further boosted its sales.
E) THE EXTENT OF GLOBALISATION ON ORGANISATIONS
There are various positive and negative impacts of globalization on business
organizations working multi-nationally. The target markets have expanded and there are more
number of customers. Resources have become cheaper and easily available and western
countries can utilize the cheap labor pool in the developing nations (Crane and Matten 2016.).
The information and technology sector have received a great boost because of globalization.
Exchange of technological knowhow and knowledge, which help the developing countries, in
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