The adoption of new technologies and trends is being facilitated in the industry for the competition and the customer’s overall experience. Many suppliers that are having similar strategies face a strong competition. The barriers for exiting the markets are high. Products and services of are undifferentiated leading the customer to focus on the prices offered. Low market growth, so it can be increased only by taking another firm’s market share.
Furthermore, the disadvantage of emerging markets is the economic risk. M&S may suffer from insufficient labour and raw materials, high inflation or deflation, unregulated markets and unsound monetary policies, due to the low economic stability of emerging markets. In addition, M&S may face the difficulty to raise capital, due to the poorly developed banking system, and thus causes M&S unable to look for a proper financing that is required for the growth of the business (Ameriprise, n.d.). Thus, economic risk may be faced when doing business in emerging markets. One of the disadvantage of emerging markets is the political risk.
Globalization is the process regarding an increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture. It can also be tied to business ventures where businesses or other organizations develop international influence or begin functioning on an international scale. The idea of globalization has become very controversial in the United States labor market. There are many pros and cons on how it affects the labor markets. Along with the labor market controversy people also debate over whether globalization is a threat or opportunity to the United States economy.
On the external side, opportunities are elements, works or projects that the organization could exploit to its advantage. Example of opportunities can be market growth and changing lifestyle. While threats are the external factors and elements that can cause trouble for business and challenge the organization 's performance. Most of the threats can be economic dropdown, competition and government regulations. (Pickton,
If there is a problem manager normally look back at experience and the solution to the problem. This is a way organization form strategy decision. The existing culture of the organization is a major impact. If it is an organization that is reluctant to change and doesn’t embrace innovation, then they are going to make decisions and approach strategy based on something already existed or their experience. The problem with this is it stifle innovation and can prevent innovative change.
Hence, the firm is a price maker and changes prices quite frequently to maximize profits. In spite of that, barriers to entry in an oligopoly market are high. The prime barriers are economies of scale, access to costly and sophisticated technology, patents and tactical measures by existing dominating firms devised to hinder new firms from entering the market. In addition, other sources of barriers include government regulation favoring incumbent firms making it difficult for nascent firms to
That is the time when corporate finance comes into action. It can be said that corporate finance department is the backbone of the company. Corporate finance is simply about advising. With the changing financial environment, the financial setup of the companies has become increasingly complex and time consuming. The more challenging environment requires new solutions to match changing business setup and strategies.
Having different accounting standards in the world is a problem for multinational public limited companies and investors in order to be able to compare and evaluate financial statements (Doupnik & Perera, 2009). Due to the economic and financial scandals and meltdown in recent years, the pressure has been increased on some countries such as United States. Therefore, it must eliminate the gap between the International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). The world of accounting diversity will have consequences on such changes, and the standard convergence of US GAAP with International Financial Reporting Standards also largely affect corporate management, investment, stock market, accounting personnel and accounting standard setters. In addition, the convergence of accounting standards will change the approach for international accounting harmonization to CPA and CFO, it affects the quality of international accounting quality standards and the effort made toward GAAP and IFRS convergence
If the coach and individual do not have, or cannot create a working relationship and effective rapport then the sessions plus projects will be not support to achieve successful outcomes for either party. They must be willing and accepting the fact that they will change, and have commitment to the process. If the individual undergoing coaching is unresponsive or takes constructive feedback negatively, the coaching will be ineffective in developing leadership potential. The embracing of the process and the development of an ongoing conversation with a coach can be a difficult process. The current trend on developing internal coaches, whilst cost effective, may not always yield the anticipated results due to potential operational conflicts between those coaching, and those being coached.