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Importance Of Business Environment In China

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This paper seeks to demonstrate the business environment of China and helps in the strategic planning for international business. The purpose of this paper is to explain the significant factors that will impact PANDORA’s business related activities when they decided to grab the Chinese markets.Their main focus is to produce the low cost jewelry. This paperbegins with the background information of China, PESTL analysis whichinclude;economic, social,political, social, legaltechnological, and environmental, factorsfollowed by the SWOT model. A balanced scorecard will be prepared that will provide the strategic framework for the well-managed implementation of the international strategies. In the end, some recommendations regarding PANDORA business …show more content…

This analysis requires the identification of opportunities and threats, and enables the businesses to survive in the competition (Lynch, 2009). The two models which are considered fit for this analysis are: SWOT Analysis and PESTEL Analysis. PESTEL analysis has two main functions. Firstly, it enables the company to identify and evaluate the environment within which it operates. Secondly, it enables the business to provide data and information to predict the future trends of the market (Dinçer, 2004). This study of environment involves political, economic, social, technological, environmental and legal factors. WhileSWOT analysis involves the internal as well as external analysis where the business studies its strengths and weaknesses internally and the opportunities and threats being faced externally. This careful analysis of the internal and external environment enables the business to identify the opportunities for business growth and the deficiencies of the business in comparison with the competitors(Weihrich, …show more content…

(Handy, Lim, & Milsom, 2003). PANDORA Jewelers is one of the beneficiaries. It was founded in 1982 headquartered in Copenhagen, Denmark. PANDORA employs about 11,400 people and is carrying its operations in almost 58 countries. PANDORA is listed in NASDAQ and Copenhagen stock exchange. In 2004, PANDORA’s revenues crossed 11.9 billion DKK. PANDORA works to offer the women all over the globe with high quality, modern jewelry products. PANDORA has a product catalogue offering charms, bracelets, earrings, necklaces, pendants and rings(PANDORA , 2015)
In order to expand the business operation in china,
In order to help it to expand the business it to China, it needs to examine the China business culture, values and belief and seek opportunities to shift the manufacturing unit in China. PANDORA firstly needs to observe the overall environment of jewelry related business in China. After the environmental analysis, we’ll discuss the Porter’s five forces model and would come up with a balanced scorecard that will help PANDORA in making a strategic business plan to begin in China.
PESTEL Analysis by

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