Global Business Environment Has Continued †Myassignmenthelp.com

Question: How to the Global Business Environment Has Continued? Answer: Introduction It is from such an understanding that this reports aims at providing an environmental analysis of the Blackmores Company limited which is an Australian leading health product manufacturers (Popa 2015, p. 9). The analysis will cover both the internal and external operating environments of the company and factors from both environments which may hinder the growth and development of the company. It will also provide an internal analysis of the company management and assess its quality and contribution to the growth of the company as well as analyze the performance outlook of the company through the relevant data and graphical analysis. Internal analysis Blackmores company limited as described from above introduction is an Australian based health product manufacturer which is engaged in the development, sales my marketing of health products for both animals and human consumption. The market coverage of the company extends up to 17 countries globally with majority been the Asian countries. The company offers over 250 health products including vitamins, minerals, herbal and nutritional supplements. It, therefore, works with a group of other subsidiary companies for effective service delivery across the nations including; the Bioceutical Company, the Pure Animal wellbeing Company, the Blackmores institute, the Blackmores Asia Company, the Fusion health as well as the Before companies (Heuvel 2017, p. 89). The company has received an award for the most trusted brand for vitamins and supplements in Australia in 2016 for its eighth consecutive year. The company has enjoyed a sustainable growth under the leadership of Mr. Marcus Blackmore who has served as the executive chairman of the Board of Blackmore limited since 1973. He is an experienced and transformational leader who holds an honorary doctorate of Economic development of Australia. He is an alumnus of Harvard business school and also served as an honorary fellow of the Heart Research Institute. It is absolutely correct to say that the growth of this company has not only been engineered by Mr. Marcus Blackmore but also greatly by Christine Holgate, she is the chief executive officer and managing director as well as the executive director of the company since 2008. She is such a transformational leader in the global business sector with over 30 years of experience in various international leadership roles across various sectors such as the health care, telecommunication as well as the finance sectors which are known to be the most regulated industries. She possesses three post graduate diplomas as well as a masters degree in business administration. She has received a number of international recognitions and rewards in the business world due to her relentless efforts and performance delivery across different firms. In the year 2015, Popa (2015) denotes that the company received a recognition as she was in the top 100 most influential women in Australia as well as been named the CEO of the year by the CEO Magazine and becoming the first female to win such an award. Christine Holgate was named as the most performing CEO by the Daily Telegraph as well as receiving the Australian Growth Company Award for women in leadership. Such quality in their management team including other qualified and experienced directors have all worked together to the growth and development of the company. Resources endowment and capabilities Due to the increasing human needs and demand for health products, the company has continued to increase its market coverage by conducting research on new markets across the globe. Tanase (2016) points out that one of their emerging and established markets its the China market which has been brought about by the increasing population in the country and lack of quality medical resources and health supplements. Through their wide coverage, the company has mobilized enough resources in a bid to meet the demands of its clients in the 17 countries. There are also increased capabilities and opportunities for more expansion as seen from their 2016 financial revenue report released by the Thomsons Reuters, the world largest international multimedia news agency. In their report, the company recorded a 52% increase in its revenue from ordinary activities which amounted to $ 717.2 million and a net profit after tax of $ 100 million and the companys dividend share was at 210 cents per security. The business environments Businesses do not operate in vacuums; they usually operate in an environment (Tanase 2015, p. 6). Therefore, business environment may be described as all the internal and external factors which may affect the general performance of the company. The internal business environment comprises all factors within the company which may impact or affect the success of the company. The management of the company in the most case has control over such internal factors as managing the strength of internal operations is very significant to the business success (Popa 2015, p. 9). It comprises of the management attitude and valuing of employees in the company and the effectiveness of communication within the company. Employees are usually a key asset to the company and their strength is a very vital business factor. Companies, where employees are highly motivated, are more productive than in companies where they are not. Motivation encourages hardworking and use of individual talents to enhance the performance and productivity of the people. According to Endrikat (2013) the most common internal factors affecting the performance of the companies include; organizational and operational factors such as poor record keeping, lack of quality in supply chain and existence or use of an outdated IT system which greatly affects the clients and customers reliability as well as loss of important business information. There are also other risks associated with the strategic management which affects the firms ability to achieve its objectives as outlined in the company business plan (Gilroy 2014, p. 38). A company may also adversely suffer from its inability to integrate innovation hence increasing competition from its customers. Financial stability of the company is also important as it enhances smooth running of the company operations and lastly the employee risks which may result from industrial actions. It is therefore required that the management of the company should take care of these issues before they happen. SWOT analysis ha s been employed by many managers in addressing the challenges of internal environmental factors affecting business performance (Kor et al. 2013, p. 2092). SWOT analysis addresses the strengths, weaknesses, opportunities and threats of the company. The strengths and weaknesses are always internal mechanisms while the opportunities and threats are strategic tools for external environment. The external environments, in this case, refer to the factors outside the company which may affect the performance of Blackmores company limited (Elgammal et al. 2017). Most business directors and managers employ the use of PESTEL analysis as a strategic technique to address the external factors affecting the company either in a direct way and indirect ways. The name PESTEL is an acronym with each letter representing a certain factor. The analysis involves the understanding of political factors affecting the performance of the business (Subramanian, 2012, p. 195). Such political factors include; Flammer (2017) denotes that the government policies such as the imposition of tariffs and taxes, the stability of the government as well as the regulation of entry into the business and to new ventures. If these factors bear a negative effect then they may reduce the performance of the company. In this case, the policies may be formulated in Australia or in any of the 17 countries the company operates. Whichever the country, the effects may be felt by the company. The second factor is the Economic factors, which determine the general performances of firms and companies in the market. When the market suffers from high inflation rates and interest rates the company suffers as the consumers change their consumption behaviors and preferences and may shift to consumption of substitute goods and hence affect the sales and profit margins of the company. Social factors: also affect the performance of businesses as people always have different attitudes or mindsets towards certain products which may either positively or negatively influence the business (Hendley 2012, p. 3). Such factors may involve some cultural implications to the people of the society. The product should not contradict the values or perceptions of the society and the peoples social lifestyles. If a product is widely acceptable in the society it will grow its market widely as compared to a product that is rejected in the society. Domestic structures, educational levels as well as the distribution of wealth among the population also affect the performance of any business. Technological and legal factors: According to Ellis (2014), these factors affect the companys performance in a great way. The analysis of technological advancements helps the company to stay up to date and therefore the company should integrate the appropriate technology and promote the growth of innovations by the talented employees. Legal factors on the other side refer to legislative changes which may affect the business environment. The laws set by regulatory authorities of any country affect the growth and performance of business (Lake et al. 2015, p. 9). The laws may be imposed in regard to regulate the product productions, enhance competition or regulate competition and emphasis on the safety and health conditions of the products. Lastly, there are also environmental factors and the company management and directors should ensure that the location and climatic conditions of their business environments favor the growth of the business as well as its development. Such conditions affect consumer attitudes, behavior and reactions. Conclusion From the above market data of, we can deduct the following relating to the Blackmores company performance and general outlook. The data above shows a relative increase in the company performance as compared to the last years performance as the company seems to trade at a relatively higher price index ratio of 11:15 as compared to those of its peers and competitors trading at 1:20. Hence the company outperforms its competitors as it has a relatively higher operating performance indicated by very high-profit margins. There is also a significant increase in the revenues as well as the company earnings. The pretax margins of the company are also relatively higher which shows a tight control on the companys operating activities as compared to those of its competitors. And lastly, the increased levels of company capital investments indicate the stability of the company and its ability to support the future growth of the company. 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