Why it might be problematic to transfer it to business / Why it might be a good idea to transfer it to business 1. Transfer Swarm Intelligence to Business (Martin) Companies in almost every industry operate in an increasingly dynamic and agile environment with volatile conditions. The global markets are progressively saturated and the competition regarding market share increases. This urges the need for a successful differentiation from competitors. Furthermore, the intensified competition and the changing consumer behavior, lead to additional pressure for companies.
As the name suggests, “internal” business environment refers to internal factors and resources that affect the running of the business. This primarily includes the workforce where the employees play a vital role in affecting company’s performance. If a company has well trained or motivated employees, that company is likely to get good output from them. However, if the same company recruits unmotivated staff who do not perform well or dig in their heels when a new plan arrived, this will affect that company’s production levels and ultimately hinder its profitability by causing a turnover. Another factor to consider is all the capabilities that a company possesses.
When the global economic crisis occurs, it affects living of all people especially those living in least developed countries. According to a recent report of the United Nations, since the onset of the global financial crisis, developing countries generated much of the global output growth. The group of least developed countries (LDCs) is experiencing a modest slowdown of their economies, with growth rates falling from 5.1 per cent in 2014 to an estimated 4.5 per cent in 2015. Diminished export demand from developed countries, lower commodity prices, net capital outflows, and weak investment growth and, in some cases, military conflicts, natural disasters and adverse weather effects on agricultural output are the causative factor for the slowdown of economy. The global inflation has made living worst in poor nations.
“The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles,” Azim Premji. This article will discuss the benefits and reasons for a company to outsource, backsource, and offshore a business process or service. It will also briefly discuss disadvantages of each category and outline how to avoid and mitigate failures. Outsourcing is a business practice that could make or break the company. It refers to the way in which businesses delegate their services or processes to an outside company.
With the SWOT analysis the organisation is better able to identify emerging opportunities and therefore take advantage. Companies face many threats, the SWOT analysis can help them to identify the threats, and so the company can be better prepared and develop contingency plans. Organisations using the SWOT analysis are able to get a clear picture of how they should position themselves in the market. They know what their strengths and weaknesses are, and are able to exploit the opportunities, while dealing with the
It also reads the global political condition’s effect on the country and business. When conducting this step, ask questions like “What kind of government leadership is impacting decisions of the firm?” Some political factors are: Government policies Taxes laws and tariff Stability of government Entry mode regulations ECONOMIC FACTORS Economic factors involve all the determinants of the economy and its state. These are factors that can conclude the direction in which the economy might move. So, businesses analyze this factor based on the environment. It helps to set up strategies in line with changes.
The latter, mostly happens when the investments are made in underdeveloped and developing nations, in which the taxation costs coming from an arbitral award resulting from ISDS mechanism may generate social and economic chaos. Companies are also the principal contributor to global problems; such as global warming and social inequality. On view of this, it is clear that companies are playing a big and important role on creating global problems, and should be included on the global decision making
According to Gerring, et al (2005), democracy has a negative effect on our economic growth. This is because there are many problems in estimating the impact of democracy on growth; it is not a key to economic growth, due to the concern of the difficulty in initiating drastic economic reforms (Leftwich, 2005). Impact of elections on Economy Political elections also have an influence on the prices and interest rates. Kaplan (2006) maintains that competitive elections in a democratic state lead to unfavourable economic outcomes like inflation. Politics in Kenya had a causal sequence on their economy due to violence that occurred in the 2007 elections.
Basis of Decisions: It provides all the necessary information for taking good decision. It helps in brand building, product positioning and market penetration. Help in Making Policies: It forms the strong base for making strong policies. Technological Planning: In today’s world technology is changing at the lighting speed, so understanding the environment can helps make better technological plans. Survive in the Business: Only that business will survive and success who has estimated the situation like recession in advance through business environment study 1.3 WHAT IS A BUSINESS?